§ Mr. DonohoeTo ask the Secretary of State for Scotland (1) what assessment his Department has made of the impact on the timetabling of capital projects by existing councils as a result of their being unable to commit more than 70 per cent. of the new unitary budgets for 1995–96; [1183]
(2) when he issued guidance to existing councils in Scotland not to commit more than 70 per cent. of the capital budgets of the new unitary councils in 1995–96; and what considerations underlay the issuing of this guidance; [1184]
(3) what discussions officials of his Department have had with those of the existing regional, district and island councils and shadow councils relating to the impact of his Department's guidance to existing councils not to commit more than 70 per cent. of the capital expenditure of the new unitary councils in the financial year 1995–96; and what the content of these discussions has been. [1185]
§ Mr. KynochLocal authorities' ability to enter into legal commitments in forward years is restricted to a percentage specified in annual capital consent letters. In previous years, authorities have been permitted to enter into forward legal commitments on their non-housing capital programmes of up to 80 per cent. of their provisional capital allocations for the two subsequent years. Non-housing capital consents issued to authorities on 13 March 1995 changed the amount which could be committed in 1996–97 and 1997–98 to 70 per cent. of capital allocations for 1995–96, except in the case of the islands councils where the limit remains at 80 per cent.
The change was made to ensure that existing authorities were able to maintain continuity in their capital programmes without unduly constraining their successors 362W by committing a very high proportion of their likely future resources. This change was discussed and agreed with representatives of the Convention of Scottish Local Authorities at a meeting on 14 February 1995.
The forward commitment limit of 70 per cent. for housing capital programmes is unchanged from previous years.
§ Mr. DonohoeTo ask the Secretary of State for Scotland when he expects to be able to indicate the budgets and capital budgets of Scotland's new unitary councils. [1182]
§ Mr. KynochMy right hon. Friend intends to issue non-housing capital consents in late February or early March 1996 and housing capital consents in March 1996. The setting of the revenue budgets for 1996–97 is entirely the responsibility of the councils concerned.