§ Mr. Squireasked the Secretary of State for the Environment for what proportion of total capital expenditure by local authorities loan sanction or other Ministerial consent is required; and what is the estimated saving in public expenditure that would result if such consents were withheld for a period of six months from 1 November (a) for the financial year 1980–81 and (b) for the financial year 1981–82.
116W
§ Mr. KingThere is no statutory requirement for authorities to seek loan sanction where expenditure is financed without borrowings or for them to obtain any other ministerial consent to capital expenditure except for certain specific purposes. If loan sanctions or other consents were withheld after 1 November 1980, public expenditure savings for 1980–81 could be less than £40 million.
An estimate of savings in 1981–82 is not possible as under the new capital expenditure controls which are expected to take effect from 1 April 1981, authorities will in general be free to determine their own priorities for expenditure, without the need for central Government consents, within an overall ceiling.