Capital Finance (Hansard, 24 February 1997)

§ Mr. Curry

The capital finance regulations, first made in 1990, have become increasingly unwieldy because of successive amendments. I want councils to have the clearest possible guidance and not be tied up with unnecessary red tape, so I am publishing today an updated and simplified version of the regulations consolidating all the changes made in the last six years.

The document being published is an entirely new text with all the changes set out clearly and simply. It will make it easier for local authorities to make the best use of all the opportunities that we have created for investment, through public-private partnership, in new schools, roads and other amenities for their residents.

The new regulations also bring into effect changes to the rules on capital receipts to help promote regeneration schemes in areas of need. Following extensive consultation the scheme has been extended to a further 21 wards, bringing the total number of authorities that can benefit to 236.

The regulations also extend for a further year the concessionary set-aside rate applying to the disposal of bus and airport companies and bring into effect a concession to help local authorities lease, for up to 10 years, private-sector dwellings for the homeless. The regulations incorporate important changes to the private finance initiative regulations made last October, strengthening authorities' powers to enter into partnership deals with the private sector. They make some technical changes concerning specified capital grants, the use of credit approvals by debt-free authorities, grants given by and repayable to English Partnerships, and capital finance arrangements for national parks authorities.

I am also publishing "A Guide to the Local Government Capital Finance System." This is an informal, user-friendly explanation of the key features of the system which authorities will be able to turn to for day to day guidance.