§ Mr. Tebbitasked the Secretary of State for the Environment if he will seek powers to prevent local authorities from evading his restrictions on non key sector capital spending by the transference of expenditure from capital to current accounts through the use of leasing arrangements with private sector companies which are also able to benefit from the tax allowances in respect of capital equipment purchases not available to local authorities.
§ Mr. John SilkinThere are a number of ways—notably through revenue—by which local authorities can finance capital spending other than by borrowing. To achieve complete control over such spending would mean significantly circumscribing local government freedom. I am not convinced at present that such a drastic step is warranted.