HC Deb 21 April 1988 vol 131 c537W
Mr. Salmond

To ask the Secretary of State for Scotland (1) if he will make a statement regarding the rejection by his Department's finance division of Grampian regional council's social work committee's request for an additional allocation to the region's capital programme in respect of voluntary-funded improvements to the regional council's homes for the elderly at Durnhythe, Portsoy and Rose Innes, Aberchirder;

(2) what criteria his Department uses when requiring funds from voluntary sources to be counted as part of local authorities' capital plans.

Mr. Lang

The rules as to the counting of capital expenditure by local authorities against the allocations issued to them are set out in guidance issued annually by my Department. In broad terms, capital expenditure incurred by local authorities must count against allocations, no matter how that expenditure is financed.

In circumstances such as those referred to there may be more than one way to achieve the desired result. I do not know why Grampian regional council has apparently chosen not to use such flexibility as is built into the system. My Department has written to remind it of the possibilities. I therefore see no case for issuing an additional capital allocation to the authority for these projects, and in any case the resources for 1988–89 have all been issued.

Mr. Salmond

To ask the Secretary of State for Scotland on how many occasions in the last five years his Department has required that the costs of improvements to regional council homes met from funds from voluntary sources should be counted as part of the council's capital plan; and if he will give a breakdown by region.

Mr. Lang

The Government's rules covering capital expenditure by local authorities issued annually by my Department are set out in general terms and do not specify every eventuality. While my Department is ready to give advice on specific points, it is for authorities to satisfy themselves and their auditors that the rules are adhered to. Authorities' returns do not identify capital expenditure financed from voluntary sources.