§ Mr. BattleTo ask the Secretary of State for the Environment what guidelines have been given to local authorities as to how expenditure on capital receipts should be distributed as between debt reduction and housing investment.
§ Mr. BaldryLocal authorities are normally allowed to spend 25 per cent. of their receipts from council house sales and 50 per cent. of most other receipts, the balance being set aside as provision for credit liabilities, including debt redemption. Under a temporary relaxation in these rules, announced in the Chancellor of the Exchequer's autumn statement, local authorities may spend virtually all of the capital receipts they receive between 13 November 1992 and 31 December 1993. Local authorities are free to spend such receipts on any kind of capital project, or to use them to make provision for credit liabilities.