HL Deb 29 March 1999 vol 599 cc15-6WA
Lord Hylton

asked Her Majesty's Government:

Why 75 per cent. of the receipts from the sale of council housing must be used for debt redemption, when similar rules do not apply to the capital receipts of central government. [HL1504]

Lord Whitty

Sales of council housing mainly arise as a result of tenants exercising their right to buy or through large-scale voluntary transfers. They result in substantial proceeds which do not accrue in a pattern that reflects differences in the relative need to spend. Were set-aside not to apply, control of public expenditure would require an offsetting reduction in capital allocations, which would disproportionately affect those councils with the highest levels of need.

Central government debt is managed centrally by HM Treasury so the issue of departments repaying debt does not arise. There are specific agreements between departments and HM Treasury about the extent to which capital receipts can be used to finance expenditure rather than being surrendered to the Treasury.

Back to