HC Deb 21 March 2001 vol 365 cc250-1W
Mr. Dawson

To ask the Secretary of State for the Environment, Transport and the Regions if he will set out, with statistical information relating as directly as possible to the Lancaster and Wyre constituency, the effect on Lancaster and Wyre of his Department's policies and actions since 2 May 1997. [154684]

Ms Beverley Hughes

The Lancaster and Wyre constituency has benefited from funding provided to Lancaster city council, Wyre borough council and Lancashire county council. It is for the local authorities to decide where within their areas these resources are invested.

The principal funding which this Department has provided in 1997—98 to 2000—01 are shown in the table. These include grants and borrowings approvals for revenue and capital expenditure.

Government plans to implement the proposed reform of the local authority capital finance system set out in the Green Paper, "Modernising Local government Finances"; and if he will make a statement. [155121]

Ms Armstrong

Consultees have overwhelmingly endorsed our proposals to abolish the present system of local authority capital controls and replace it with the prudential system described in the Green Paper. Legislation will be introduced as soon as parliamentary time allows. The new system will rely heavily on professional regulation and my Department has agreed to provide financial support to the Chartered Institute of Public Finance and Accountancy who will draft the

necessary professional Code. Work on that and on other detailed development of the system will be taken forward immediately.

Under the new system local authorities will be free to invest in their communities without having to get permission each time from central Government. The consultation confirmed our view that the proposed safeguards in the system will ensure that authorities do not run up unsustainable levels of debt, and that the increased flexibility will allow them to deliver better value for money, including through partnership working.