HC Deb 03 March 1994 vol 238 c880W
Mr. Burns

To ask the Chancellor of the Exchequer what consideration he has given to the rules on annuality for nationalised industries; and whether he will make a statement.

Mr. Portillo

I have decided that from 1994–95 nationalised industries should, as a general rule, be allowed to defer spending equal to up to 5 per cent. of their capital investment from one year to the next. This will be achieved by adjusting the industries' external finance limits, so that extra spending in the later year is matched by reduced spending in the earlier year. This change should make it easier for nationalised industries to manage their capital expenditure programmes.

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