HC Deb 20 October 1993 vol 230 cc275-6
14. Mr. Hendry

To ask the Secretary of State for the Environment what is the current extent of local authority debt; and if he will make a statement.

Mr. Curry

At 31 March this year, the total outstanding debt of local authorities in England was £37.6 billion. We shall continue to encourage authorities to reduce their debts.

Mr. Hendry

Can my hon. Friend confirm that the level of indebtedness is markedly worse in authorities that are Labour controlled than it is in those that are Conservative controlled? Can he also confirm that those indebted Labour authorities are, all too often, the authorities that have the highest average levels of council tax, the highest levels of uncollected rents, the highest levels of empty council properties and the worst services for looking after their population?

Mr. Curry

My hon. Friend is absolutely right. Some authorities seem to believe that debt has no impact at all. The fact is that debt costs the equivalent of £110 per adult in the country. Of course, that is money which must be paid in interest charges; it is money which cannot be spent on services. The taxpayer and the ordinary citizen have every interest in ensuring that that debt is brought down because services immediately benefit.

Mr. Betts

Is not it a bit rich for Conservative Members to talk about debt in the current situation? Does the Minister accept that the debt of local authorities, by law, is incurred in investment in long-term infrastructure projects? Labour authorities that have debt have it because they have invested in housing, in schools and in public transport systems over the years. The difference between their debt and the Government's debt is that the Government have frittered away the long-term assets of this country and have their debt because of their short-term economic crisis.

Mr. Curry

One need only go to Sheffield to find out how untrue that is.

Mr. Matthew Banks

Is my hon. Friend aware of how much local government in Southport is in debt? It is in debt to my hon. Friend for listening so carefully and for acting so decisively to ensure that the structure of local government in my constituency will be reviewed shortly so that we can recapture the unitary authority status that we lost in 1974 and the independence that Southport rightly deserves.

Mr. Curry

We have made it clear that the Boundary Commission will examine the boundaries in the metropolitan areas when it has concluded the present review. I have no doubt that where there is an overwhelming demand for change, it will listen to those demands.