§ Dr. CunninghamTo ask the Secretary of State for the Environment what encouragement he has given to local authorities to capitalise expenditure following the storms of 15 and 16 October.
§ Mr. RidleyMy Department has invited local authorities which expect to incur capital expenditure in the current financial year on making good storm damage to apply for additional capital allocations. Where items are not insured, or are not covered by the special grant aid under the Bellwin rules, authorities should consider the scope for capitalising costs. Whether any particular item of expenditure is properly chargeable to capital account is a matter for the chief financial officer, and the auditor, of the authoriy concerned. But I would draw attention to the schedule 12 to the Local Government, Planning and Land Act 1980 which provides (inter alia) that expenditure on the renewal or replacement of buildings and structures, the repair of maintenance of dwelling houses (when financed by borrowing), and the renewal or replacement of vehicles, vessels, and immovable plant, machinery, and apparatus is prescribed expenditure for the purposes of part VIII of that Act, which is concerned with the capital expenditure of local authorities.