§ Baroness Hamweeasked Her Majesty's Government:
Further to the reply of Lord Strathclyde of 21st October 1992, (H.L. Deb., cols. 755–756) that the capital finance regulations (which preclude local authorities from leasing individual properties for more than three years) would not be amended, whether any savings are made by the substitution of one short-lease property for another after a period of three years; and if not, whether Her Majesty's Government will consider the amendment of the regulations to permit the extension of such leases within six months prior to their expiry.
§ The Parliamentary Under-Secretary of State, Department of the Environment (Lord Strathclyde)The capital finance regulations do not prevent properties from being leased by local housing authorities for more than three years. They do contain a concession under which leases of properties of three years or less which are used to provide temporary accommodation do not count against an authority's capacity for capital expenditure. I understand why it is that local authorities would want this concession to14WA be extended. The Government are considering a number of representations that have been made about this, taking account of the arguments that have been put forward, and other relevant factors, including the need for control over public expenditure.