§ Mr. GregoryTo ask the Secretary of State for Transport how a long-term finance lease by British Rail would be capitalised for public expenditure purposes.
§ Mr. FreemanLeased assets will be capitalised for external financing limit—EFL—purposes in the same way as if they had been bought. The capitalisation of such leases follows standard accounting practices applying to358W all similar business undertakings whether in the private or public sector. Leasing is a form of borrowing, and the Government need to ensure that BR borrows according to its means; hence it is brought within the same EFL control as all other borrowing.