HC Deb 19 April 1994 vol 241 cc482-3W
Mr. McMaster

To ask the Secretary of State for Scotland what is the current outstanding loan debt of Scottish local authorities in relation to(a) housing and (b) general services; how much in each case and in (i) cash and (ii) percentage terms this debt accounts for in relation to (1) rents and (2) council tax bills; and if he will make a statement.

Mr. Stewart

The available information is set out in the table.

Per cent. £ million
Housing revenue account
Outstanding debt at 31 March 1993 3,823
Loan charges 1993–941 2500
Income from standard rents 1993–94 2926
Loan charges as percentage of standard rental income in 1993–94 54
General fund services
Outstanding debt at 31 March 1993 4,624
Loan charges 1993–943 4730
Budgeted income from council tax 1993–945 912
Loan charges as percentage of budgeted income from council tax in 1993–94 80
1Repayment of principal, interest on debt and loans fund expenses.
2Provisional outturns.
3Repayment of principal and interest on debt.
4Local authority budget estimates for 1993–94.
5Income which authorities budgeted to raise from the council tax for 1993–94.

Mr. McMaster

To ask the Secretary of State for Scotland what plans he has to review the application of the annuality principle to local authority revenue budgets; what studies have been undertaken into the cost-effectiveness of fixed annual budgeting on the provision of services; and if he will make a statement.

Mr. Stewart

My right hon. Friend has no evidence that annuality creates any difficulty for local authority revenue budgets and has no plans for such a review. However, to assist local authorities in their financial planning, he announced for the first time last December the plans he had made for both Government-supported expenditure and aggregate external finance for the two forward years of the 1993 public expenditure survey. My right hon. Friend plans to take similar action in future years.