§ Mr. Higginsasked the Secretary of State for the Environment what is the effect on the public sector borrowing requirement if a local authority in receipt of proceeds from a council house sale lends the money to a clearing bank; and what the effect on the public sector borrowing requirement is if it subsequently withdraws the loan.
§ Sir George YoungIf a local authority receives money from the private sector for the sale of a council house and deposits it with a clearing bank, that reduces the public sector borrowing requirement in the year in which the sale is made. Withdrawing and spending the money increases the pubic sector borrowing requirement in the year of spending.