HC Deb 23 January 1930 vol 234 cc358-9W
Mr. SIMON

asked the Minister of Health whether he is aware of the growing tendency on the part of local authorities to pay off capital expenditure out of revenue; and whether he will take the necessary steps to prevent the undue spreading of this practice, in view of the fact that the extra burden thereby laid upon the rates must tend to prevent expenditure on urgently needed social services?

Mr. GREENWOOD

I am aware that some local authorities are interesting themselves in the question whether they cannot lessen the burden of interest on loans by meeting their capital expenditure, or some of it, year by year, out of revenue. But I do not think that there is any serious risk of the principle being carried too far because it runs counter to the obvious tendency to avoid shouldering a burden which can legitimately be deferred.

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