§ Mr. Heddle
To ask the Secretary of State for the Environment, pursuant to his statement in the House on 9 March.Official Report, columns 325–7, what is the position of bona fide building contractors and developers who have negotiated genuine schemes with local authorities involving planning gain and an element of barter.
§ Mr. Waldegrave
Under the proposals announced on 9 March, where a local authority acquires property, or where works are carried out on property which a local authority owns and valuable consideration for the acquisition or the works is given but not in money, then prescribed expenditure will be scored as if the acquisition or works had been paid for in cash. The proposals do not affect the existing provisions under which:
- (a) nil prescribed expenditure is scored when land is acquired by way of gift; and
- (b) payments which are made to a local authority in accordance with an agreement under section 52 of the Town and Country Planning Act 1971 but which arc not sums received in respect of the disposal of land or other assets are treated as capital receipts which may be used in full to justify additional capital expenditure.