§ Mr. Steelasked the Secretary of State for Scotland what plans he has to review the present annuality system of capital expenditure; and if he will make a statement.
§ Mr. RifkindI have no plans for any major changes to the system for controlling local authority capital expenditure. The present arrangements modify strict annuality, permitting authorities to enter into commitments for future years and allowing them a considerable measure of end-year flexibility. For non-housing expenditure I issue final allocations for the immediately following year together with provisional allocations for the two years thereafter. In addition, authorities may carry forward up to ten per cent. of any underspend, and anticipate up to ten per cent. from the following year as well as being allowed to transfer up to ten per cent. between programmes. In the case of housing expenditure when issuing final allocations for a particular year, I indicate that authorities may enter into commitments in year 2 provided they do not exceed a proportion, at present seventy per cent., of their allocation for year.
Furthermore, from 1 April authorities will be free to carry forward up to three and a half per cent. of any housing underspend into the following year and this may be increased to ten per cent. at my discretion. They may also vire between the HRA and non-HRA block.