§ Mr. AllenTo ask the Chancellor of the Exchequer what are the economic implications of central Government control of local authority capital borrowing.
§ Mr. MellorCentral Government control over local authority borrowing for capital purposes forms an important part of the overall system of public expenditure control, and is therefore essential to the economic health of the country. This control also reduces the risk that community chargepayers may face excessive debt interest payments and that an excessive burden of debt may prevent local authorities from maintaining adequate and efficient services.