HC Deb 13 June 1984 vol 61 cc912-4
19. Mr. Chris Smith

asked the Secretary of State for the Environment what estimates he has made of the outturn of local authority capital expenditure in 1984–85.

Mr. Gow

My right hon. Friend has not yet made any estimate of the outturn on local authority capital expenditure in 1984–85. Local authorities have been asked to complete a return giving their forecast of expenditure and receipts this year. We shall analyse those returns when a sufficient number have been received.

Mr. Smith

Have the Minister and his Department been under any pressure from the Treasury, which is widely reported to be concerned about a potential supposed overspend in local authority capital expenditure this year? Will he expand on his unsatisfactory answer earlier this afternoon and give the House a categorical assurance that he has no intention of bringing in a moratorium on capital expenditure to meet such pressure from the Treasury? If he fails to give that assurance, will he instead give us an assurance that he will fight for the corner of his Department against such Treasury pressure and will fight for the homeless and the badly housed?

Mr. Gow

As the House knows, capital expenditure by local authorities is cash-limited. If there should be evidence of a risk of breaching those limits my right hon. Friend the Secretary of State will take such action as he judges to be appropriate. However, we need to be aware that we are only 10 weeks into this financial year.

Mr. Allan Roberts

The Minister has made a statement to the House which implies that a moratorium is under consideration or that there is likely to be one if local authorities overspend on Government targets. Will the Minister recognise that only last year his Government were criticising local authorities for so called underspending? Now that local authorities are responding and providing work for the building industry, the hon. Gentleman and his Government will penalise them and those in need of local authority house building and house improvements.

Mr. Gow

Had the hon. Gentleman listened to the answer that I gave—or if he reads the Official Report tomorrow—he would know that I made no statement of the kind that he attributed to me.

Mr. Tony Banks

What discussions has the Minister had with his right hon. Friend the Chancellor of the Exchequer regarding a moratorium on capital expenditure?

Mr. Gow

None, Sir.

Mr. Straw

Is the Minister aware that we know him well enough to know that his failure to give the categorical assurance that there will be no moratorium, and the weasel words that he has given to my hon. Friends the Members for Bootle (Mr. Roberts) and for Islington, South and Finsbury (Mr. Smith) point clearly to the fact that the Government are contemplating a moratorium and that one is likely to be introduced?

Does the Minister not recognise that the stop-go-stop approach of this Government to capital expenditure is extremely inefficient and deeply disruptive of private manufacturing industry and the building that he claims he wishes to encourage? If my interpretation and that of my hon. Friends is wrong, would the Minister like to give the House a categorical assurance that there will be no moratorium on capital expenditure during this financial year.

Mr. Gow

The present system of control of capital expenditure by local authorities is not perfect. In this, as in other matters, we shall continue to strive for perfection.