§ Mr. Allen
To ask the Secretary of State for the Environment (1) if he will bring forward proposals to end controls on local authorities' ability to borrow money to meet local needs;
(2) if he will make it his policy to introduce proposals to replace existing controls on local authority borrowing powers with a statutory requirement to pay back loans from revenue over a minimum period;163W
(3) what are his reasons for continuing central controls on local authority capital spending; and if he will make a statement on the achievements of this policy.
§ Mr. Key
No. Local authority capital expenditure which is mainly financed by borrowing amounts to a quarter of all public sector capital expenditure. Since the end of the last century, successive Governments have found it necessary to exercise some control over local authority capital expenditure and borrowing.