§ Mr. StrawTo ask the Chancellor of the Exchequer how many member countries of(a) the EC, (b) G7 and (c) the OECD include expenditure incurred by sub-national units of government, local authorities, states, departments, länder, municipalities, and so on, and financed by local taxation in the expenditure to be controlled by central Government in their public expenditure planning processes; and if he will make a statement on the inclusion of United Kingdom local authority self-financed expenditure in the new control total.
§ Mr. PortilloAs explained in annex C to chapter 2 of the "Autumn Statement"—paragraph 2C.9—local authority self-financed expenditure—LASFE—is included in the new control total because it is a significant component of general Government expenditure, is not primarily cyclical and cannot sensibly be allowed to vary without any requirements for offsetting adjustments. Although LASFE is not directly under central government control, the Government influence and restrain local authority expenditure, and hence LASFE, through grant, capping and capital receipts rules.
Information on which OECD countries include expenditure incurred by sub-national units of government and financed by local taxation in their public expenditure planning processes is not readily available. It can be obtained only at disproportionate cost.