HC Deb 24 June 1943 vol 390 c1294
26. Mr. Wootton-Davies

asked the Minister of Health whether he will consider giving local authorities general powers to create reserve funds to meet contingent liabilities?

Mr. E. Brown

Local authorities have power to set up reserve funds for a few special purposes in order to equalise expenditure, such as the Housing Repair Fund, and a number of authorities have local Act powers to set up other reserve funds in connection with trading undertakings. This matter, in its more general aspects, has been discussed with representatives of the associations of local authorities, but I do not think it would be desirable that local authorities should be empowered to raise by way of rates more than is requisite to defray expenditure necessarily to be met in the financial year.

Mr. Lipson

As a great deal of the expenditure has had to be postponed through war conditions, is it not desirable to allow local authorities to prepare for contingencies after the war in that way?

Mr. Brown

My answer does not overlook that.