§ Mr. Harry GreenwayTo ask the Secretary of State for the Environment if he will make a statement on what steps he proposes to take in the light of the proposals by Ealing, Brent, Hounslow, Hammersmith and Fulham councils to use ratepayers' revenue for public housing on a rotation basis to avoid proposed capital controls on council expenditure; and if he will make a statement.
§ Mrs. Virginia BottomleyUnder the Local Government (Prescribed Expenditure) (Consolidation and Amendment) Regulations 1987, as subsequently amended, local authorities will usually not incur prescribed expenditure when acquiring leasehold interests in residential property for periods not exceeding three years. The Government have no plans to change this. A new capital finance system is, however, to be introduced, subject to the approval of Parliament, with effect from 1990–91. We are considering the appropriate treatment for forward commitments entered into by local authorities between the publication of our proposals on 7 July and the commencement of the new system.