§ Mr. TippingTo ask the Secretary of State for the Environment if there will be transitional costs arising from local government reorganisation.
§ Mr. Baldry[holding answer 6 December 1993]: There will be some start-up costs associated with reorganisation, which we expect authorities to keep to an absolute minimum, and which in the longer term can be offset against savings arising locally from the reorganisation.
§ Mr. TippingTo ask the Secretary of State for the Environment what arrangements he has made to ensure that local authorities and council tax payers not involved in local government reorganisations are protected from any transitional costs resulting from areas that are reorganised.
§ Mr. Baldry[holding answer 6 December 1993]: Transitional reorganisation costs will be incurred only by those authorities in the areas that are reorganised. As my right hon. Friend announced to the House on 2 December, we intend that authorities should be able to meet by borrowing any such costs incurred by them in 1994–95, and that any borrowing should be repaid from savings or sales of assets after reorganisation.