§ Dr. Godman
To ask the Secretary of State for Scotland if he will lift restrictions preventing local authorities from diverting money from capital receipts into the building of houses.
§ Lord James Douglas-Hamilton
There are no restrictions that debar local authorities from using the capital receipts arising from the sale of assets, including council houses, to which the housing revenue account applies for the purpose of financing the construction of new council houses. Within the aggregate levels of the appropriate consent to incur capital expenditure issued by my right hon. and learned Friend under section 94 of the Local Government (Scotland) Act 1973, local authorities are free to determine their own priorities for council housing investment.