HC Deb 16 January 1986 vol 89 c651W
35. Sir David Price

asked the Chancellor of the Exchequer what are the Treasury reasons for seeking to ensure that local authorities are not allowed to spend their capital receipts as they see fit.

Mr. MacGregor

The Government are committed to tight control of public expenditure of which capital expenditure by local authorities forms part. In order to be able to plan expenditure and to ensure these plans are met, the Government must ensure that receipts are drawn down and spent at an orderly rate. There is no restriction on the investment of the cash or its use to repay debt, or on the services for which receipts can be used to justify additional spending, within local authorities' normal powers.