§ Mr. BurnsTo ask the Chancellor of the Exchequer whether local authorities are able to borrow from financial institutions outside the United Kingdom.
§ Mr. PortilloThe Treasury has today issued four general consents. Three of those consents, taken together with complementary approvals given by the Secretaries of State for the Environment and for Wales, allow local authorities in England and Wales to borrow in sterling from any credit institution provided it is authorised by the supervisory authority of an EC member state. The fourth allows local authorities in Scotland to borrow in sterling from EC credit institutions.
These measures, which have been taken under section 43 of the Local Government and Housing Act 1989, and under paragraph 4 of schedule 3 to the Local Government (Scotland) Act 1975, make clear the interpretation of the legislation in England and Wales and ensure compliance with the single European market in banking services.