Council Finances (Swaps) (Hansard, 9 May 1991)

§ Mr. Viggers
To ask the Chancellor of the Exchequer what assessment he has made of the effect on the United Kingdom banking industry of the House of Lords decision in the case of the district auditor v. Hammersmith and Fulham council involving swaps.

§ Mr. Maples
[holding answer 7 May 1991]: The Government are conscious of the strength of feeling about this issue among the banking community. My right hon. Friend the Chancellor of the Exchequer and I have discussed it at length with the president of the British Bankers Association on two occasions, and the Governor of the Bank of England has kept us informed of City opinion. Officials have had long and detailed discussions with the BBA. We have been particularly anxious that all possible options for mitigating the consequences of the judgment should be fully explored.
As my right hon. Friend the Secretary of State for the Environment announced on 7 May, at columns 402–3, after careful consideration, the Government have concluded that it is best not to seek to alter the existing obligations of the parties.
This problem is specific to local authority swaps and has no implications for the vast majority of financial transactions or for local authority borrowing.

§ Mr. Viggers
To ask the Chancellor of the Exchequer if he proposes to take action to end the uncertainty caused to local authorities and the banking industry by the House of Lords decision in the case of the district auditorsv. Hammersmith and Fulham council involving swaps.

Current Expenditure¹

£ million

1986–87 1987–88 1988–89 1989–90²

District council expenditure³of which expenditure on structural maintenance of roads and other highways maintenance⁴ 2.9 2.9 4.1 4.0

n/a n/a n/a 1.6

County council expenditure³of which expenditure on structural maintenance of roads and other highways maintenance⁴ 94.0 105.9 111.1 119.8

n/a n/a n/a 92.6

¹ Net of local income, but gross of relevant specific Government grants.

² Provisional.

³ Includes all highways and bridge maintenance, street cleaning for highways purposes, lighting and associated professional and technical services. Includes net expenditure incurred on behalf of other local authorities under agency agreements.

⁴ Excludes net expenditure incurred on behalf of other local authorities under agency agreements.

Current Expenditure¹
£ million
	1986–87	1987–88	1988–89	1989–90²
District council expenditure³of which expenditure on structural maintenance of roads and other highways maintenance⁴	2.9	2.9	4.1	4.0
	n/a	n/a	n/a	1.6
County council expenditure³of which expenditure on structural maintenance of roads and other highways maintenance⁴	94.0	105.9	111.1	119.8
	n/a	n/a	n/a	92.6
¹ Net of local income, but gross of relevant specific Government grants.
² Provisional.
³ Includes all highways and bridge maintenance, street cleaning for highways purposes, lighting and associated professional and technical services. Includes net expenditure incurred on behalf of other local authorities under agency agreements.
⁴ Excludes net expenditure incurred on behalf of other local authorities under agency agreements.