Clause 2 - Control of borrowing
Local Government Bill
11:00 am
Mr Nick Raynsford (Minister of State (Local and Regional Government), Office of the Deputy Prime Minister; Greenwich and Woolwich, Labour)
I am trying to respond to the previous intervention. I hope that hon. Members understand that I do give way and respond to them, but I cannot respond to two interventions simultaneously. That capacity has not yet been devised, so I am concentrating on the intervention
from the hon. Member for Runnymede and Weybridge.
There will be individual circumstances in which things might be difficult for an authority. We do not wish to say that there can be no possibility of disapplying the national limit for an individual authority if that would not have a significant impact on the overall national position. Removing that flexibility would be unwise. We believe that local government welcomes the additional flexibility. It does not welcome the power to impose a national limit, but I think that it understands why we are including it. As I have said, the power will be used only in extreme circumstances. Not having the power to make an adjustment for an individual authority would be harsh, unwise and an unduly restrictive position.