HC Deb 23 April 1991 vol 189 c387W
Mr. Peter Bottomley

To ask the Chancellor of the Exchequer what considerations of public policy and public finance follow from the decision that local authorities in exceeding their powers are not required to meet their banking commitments.

Mr. Mellor

The House of Lords has ruled that local authorities have no power to undertake interest rate swaps. The Government are studying the full implications of the judgment. The case raises a number of complex issues including the effect on local authorities and their charge payers as well as on banks.

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