HC Deb 24 October 1989 vol 158 cc406-7W
Mr. Cryer

To ask the Secretary of State for the Environment if he will introduce legislation giving powers to local authorities to conduct a referendum on any proposed development which is subject to an application for city grant; and if he will make a statement.

Mr. Moynihan

No.

Mr. Cryer

To ask the Secretary of State for the Environment what criteria are applied when assessing a company which is making an application for city grant; and if he will make a statement.

Mr. Moynihan

The criteria applied in appraisal of an application for city grant are described in the city grant guidance notes. The appraisal process seeks to establish that the private sector participant has the necessary financial strength and expertise to carry out the project, and whether any external finance needed is in place.

Mr. Cryer

To ask the Secretary of State for the Environment (1) whether planning consent is required for any development before city grant is made; what is the general level of city grant as a proportion of total anticipated expenditure; and if he will make a statement;

(2) what safeguards exist to prevent local authorities from being prejudiced in dealing with planning applications which are subject to city grant requests by accepting plans on the basis that the grant will be made; and if he will make a statement.

Mr. Moynihan

City grant applications are not accepted for appraisal unless planning permission for the project has already been granted, or is due to be considered shortly by the local planning authority. As a decision on city grant is not made until there is a final determination of planning permission, the local authority, in considering planning applications is not in a position to accept them on the basis that grant will be given.

On average, approximately £1 of city grant levies is £4 of private sector investment.

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