HC Deb 17 December 1991 vol 201 cc106-7W
Mr. Blunkett

To ask the Secretary of State for the Environment what representations he has received since March 1991 on the issue of the capital financing arrangements of local authorities; and if he will make a statement.

Mr. Portillo

The many representations received on various capital finance issues could be listed only at disproportionate cost. All are considered carefully, and legislative changes made when necessary.

Mr. Turner

To ask the Secretary of State for the Environment what assumptions he has made, in his revenue support grant announcement, regarding the level of permitted borrowing, by individual block allocation, in 1992–93 to finance capital programmes; what were the equivalent figures in the current year; and what is the basis of his assumption that the charges in 1992–93 will fall by 11 per cent.

Mr. Key

[holding answer 9 December 1991]: The estimated borrowing limits assumed for the 1992–93 RSG consultation announcement and those used for the 1991–92 settlement are shown in the table.

The standard spending assessment element for debt charges proposed for 1992–93 is based on a number of factors. One of the most important of these is expected interest rates for which a fall has been assumed from II percent. used in the 1991–92 settlement to 10 per cent. being proposed for 1992–93.

Annual capital guidelines and supplementary credit approvals
£ million
1991–92 1992–93
Annual capital guidelines:
Education 516.2 276.6
PSS 98.0 106.0
Home Office 21.7 22.6
Transport 389.7 497.3
Housing (non-HRA) 404.5 318.5
Other services 261.7 278.4
Total annual capital guidelines 1,691.7 1,499.4
Less receipts taken into account 473.9 375.0
Total basic credit approvals 1,217.8 1,124.4
Plus supplementary credit approvals
Education 4.8 42.1
PSS 18.0 60.0
Home Office 49.5 80.6
Transport 102.4 131.7
Other services 68.9 71.3
Total supplementary credit approvals 243.6 385.8
Total credit approvals (the sum of BCAs and SCAs) 1,461.4 1,510.2

Mr. Blunkett

To ask the Secretary of State for the Environment what consideration he has given to the future of local authorities' capital financing arrangements in his review of local government; and if he will make a statement.

Mr. Portillo

The outcome of the review of local government has not led to any proposals for changes in the existing arrangements for capital financing of local authorities.