HC Deb 21 February 1956 vol 549 c192
44. Mr. Ridsdale

asked the Minister of Housing and Local Government whether he is satisfied that economy measures requested by the Chancellor of the Exchequer last year to local authorities are being implemented by county councils; whether he will give figures to date of proposed savings by Essex County Council; and how these savings compare with those made by other county authorities.

Mr. Sandys

The figures asked for are not available, but there is no doubt that further restraint in local government expenditure is urgently needed.

Following upon the Chancellor's statement last Friday, I informed local authorities that the Ministers concerned intend for the time being to restrict or withhold loan sanction for many purposes.

Mr. Ridsdale

Is the Minister aware of the intense feeling and anxiety with regard to local government expenditure now that the new rating assessments have taken place? Would he assure the House that he will keep a careful watch on local authorities to see that they do not use the new lower rate poundage as a springboard for further local government expenditure?

Mr. Sandys

Local government capital expenditure amounts to about £470 million a year, and it is quite clear that local authorities must make their contribution towards the winning of the battle against inflation.

Mr. Sorensen

Is the Minister aware of the substantial amount saved by Essex County Council by transferring its banking facilities to the C.W.S. Bank when under a Labour administration?

Mr. Lindgren

Would the Minister not agree that the greater proportion of the increased charges now placed on local authorities arise, not from increased work, but from the increased interest charges that they now have to meet as a result of the monetary policy of the Government?