§ Mr. Thurnham
asked the Secretary of State for Transport what control will be exercised over capital receipts from the privatisation sales of municipal airports.
§ Mr. Michael Spicer
Under existing legislation capital receipts cannot be used to finance current expenditure. For capital expenditure, the Secretary of State for the Environment prescribed a proportion of receipts that may be added to each authority's annual allocation. For 1985–86 the proportion is 30 per cent. for all receipts other than for housing. The remainder can be used for financing expenditure within the allocation, subject to 10 per cent. virement between years. The Government is at present considering how the current system should be improved.