§ Adam PriceTo ask the Chancellor of the Exchequer what rules govern annual debt repayments by local authorities in England and Wales; and if he will make a statement. [18515]
§ Mr. Andrew SmithLike any other borrowers, local authorities have a contractual obligation to comply with the terms of repayment specified in their agreement with the lender. The local government capital finance system requires English and Welsh authorities each year to set aside amounts out of their revenue resources to meet debt and other credit liabilities. This helps to ensure that, whenever a debt falls due, the authority has enough money to make the repayment. The Government have no immediate plans to change these arrangements.