HC Deb 03 November 1987 vol 121 c684W
Sir Hector Monro

asked the Secretary of State for Scotland if he proposes to make any further changes to the cash limits for 1987–88 within his responsibility.

Mr. Rifkind

I shall be making the following changes. As announced on 23 July 1987, (Official Report columns 434–438) the cash limit for class XVI, vote 3: regional and general industrial support, Scotland was increased by £853,000; from £124.787 million to £125.640 million, to reflect the carry forward of capital underspends allowed under the end year flexibility scheme. This cash limit will be further increased, by £1.389 million, to £127.029 million. The additional expenditure is mainly for land reclamation projects. I shall also be seeking parliamentary approval for a cash limit of £370,000 for a new vote, class XVI, vote 26: Privatisation of the electricity supply industry, Scotland. This makes provision for preliminary expenses, largely advisers' fees.

The limit for the SO/LA2 cash block—which covers mainly housing capital expenditure by public sector agencies in Scotland—is at present £581.166 million. The limit is to be decreased by £62,000 and is the net effect of two changes. The first is an increase in provision of £308,000 as a result of some district councils budgeting below the limit for rate fund contributions to their housing revenue accounts, thereby releasing additional resources for capital expenditure on housing. The second is a reduction of £370,000 from net new towns expenditure, which, subject to parliamentary approval of a Supplementary Estimate for class XVI, 9—New Towns, Scotland—will be used to offset increased requirements for hotsing deficit and accumulated deficit grants on that vote.

Provision remains within the totals shown in Cm. 56 and none of these changes will increase the planned total of public expenditure.

Parliamentary approval for the changes in voted expenditure will be sought through Supplementary Estimates.