§ Mr. DalyellTo ask the Chancellor of the Exchequer what factors underlie the differential categorisation of borrowing for water supply purposes by Scottish, English and Welsh local authorities as respect Government expenditure; and what plans he has to bring the positions into line.
§ Mr. PortilloIn Scotland expenditure by local authorities on water and sewerage is subject to the same controls as other capital expenditure. No distinction is made between borrowing for water supply and for other local authority capital projects.
English and Welsh local authorities have no statutory responsibility for developing and maintaining water supplies, except in the Isles of Scilly and do not therefore need to borrow to finance capital investment. Supplementary credit approvals are issued by the Department of the Environment for capital expenditure in connection with the provision of supplies in the Isles of Scilly.