§ Mr. Straw
asked the Secretary of State for the Environment what guidance he issues to local authorities 430W on the circumstances in which they may use an accumulated surplus on housing revenue accounts to subsidise the construction by them of other facilities such as a conference or leisure centre.
§ Sir George Young
Under the provision of section 134 of the Housing Act 1980, a local authority may transfer a surplus from its housing revenue account to its general rate fund. It may then use it for any purpose proper to that fund. Total expenditure on capital projects must, however, be contained within the capital allocation available to the authority as supplemented by the prescribed proportion of any capital receipts. My Department issues no guidance as to such use in relation to expenditure on particular facilities. It is for local authorities to decide their own expenditure priorities.