§ 31. Mr. Spencer
asked the Chancellor of the Exchequer if he will estimate the contribution to control of the rate of inflation arising from restrictions on local authority spending of capital receipts.
§ Mr. MacGregor
Steady adherence to the medium term financial strategy has been the key to the Government's success in reducing inflation. Continued restraint on all public spending and borrowing—local authorities included—is vital if further progress towards stable prices is to be made. However, it is not possible to isolate the effect of the controls on local authority spending from other controls on public expenditure.