§ 89. Mr. David MartinTo ask the Secretary of State for the Environment what measures he is taking to improve standards of financial prudence by local authorities.
§ Mr. HowardI refer my hon. Friend to the answer I gave to my hon. Friend the Member for Isle of Wight (Mr. Field) on Tuesday 10 November at columns110–11. In addition to the proposals I announced then, we have already taken a number of measures, including the provisions in the Local Government Act 1987, to inhibit the use of advance and deferred purchase schemes. We will continue to keep the situation under review, and will not hesitate to take whatever steps appear necessary to restrain imprudent behaviour by local authorities. In the longer 629W term the new local government finance system we are proposing to establish will provide the basis for accountable and financially prudent local government.