§ Mr. KidneyTo ask the Secretary of State for the Environment, Transport and the Regions what approach he will adopt when considering applications for sanction by local authorities under sections 19 and 20 of the Local Government Act 1982; and if he will make a statement. [11144]
§ Ms ArmstrongAs required by the statute, we shall decide each application on its merits having regard both to our policy on sanction applications and to the circumstances of the individual case concerned. Our policy is to continue the approach previously followed, namely, that the power to sanction should not be exercised too widely. Sanction may be appropriate in those cases where the expenditure is incurred in good faith, but in ignorance of the strict letter of the law, or inadvertently without observance of requisite formalities, or under such circumstances as make it fair and equitable that the expenditure should not be disallowed by the auditor.
In accordance with our commitment to open government, we are today sending to the Local Government Association, the Audit Commission, the Commission for Local Administration and to all local authorities in England a departmental note setting out the basis on which applications for sanction under sections 19 and 20 of the Local Government Financial Act 1982 are to be made and considered. I am arranging for copies of the note to be placed in the Library of the House.