§ Mr. Dobson
To ask the Secretary of State for the Environment if he will make a statement on the purposes to which the provision for credit liabilities may be applied.
§ Mr. Gummer
Amounts set aside by local authorities as provision for credit liabilities under the Local Government and Housing Act 1989 may be applied to meet liabilities in respect of borrowing and credit arrangements. Such amounts may also be applied to meet capital expenditure, subject to the use of a credit approval. However, authorities with no long-term debt and negative credit ceiling may spend or transfer their provision for credit liabilities in accordance with regulations under the 1989 Act.