§ Mr. MichaelTo ask the Secretary of State for Wales what proportion of any income realised by the sale of any capital assets it is currently his policy to allow any district health authority in Wales to use in respect of revenue expenditure(a) in the financial year in which the sale occurs and (b) in any subsequent financial year.
§ Mr. GristI refer the hon. Gentleman to the reply that I gave him on 18 April which set out the virement limits applying to transfers of funds by health authorities between their revenue and capital cash limits. In the event that an authority wishes to exceed its virement limits, it must seek Welsh Office approval and agreement is subject to the authority's excess requirements being contained within the all-Wales virement limits. Receipts from the sale of capital assets form part of an authority's capital allocation and authorities may therefore vire such receipts to revenue in accordance with these arrangements.
Authorities also have a degree of flexibility to carry forward revenue and capital funds into a subsequent financial year. Each may carry forward 1 per cent. of its final net revenue cash limit and up to 10 per cent. of its final capital cash limit. In planning to carry forward funds, an authority may also seek the help of other authorities by entering into brokerage arrangements. In such cases the authority will lend the funds it wishes to carry forward, on the understanding that the loan will be repaid in the next or a subsequent financial year.