Clause 3 - Duty to determine affordable borrowing limit
Local Government Bill
3:30 pm
Mr Nick Raynsford (Minister of State (Local and Regional Government), Office of the Deputy Prime Minister; Greenwich and Woolwich, Labour)
I agree with the hon. Gentleman. We see the code as the first port of call; that is consistent with our approach. If CIPFA wishes to continue to perform the function—I have no reason to believe that it will not—and if the Government are happy with its work, as we have been so far, that could be the right way forward.
A review of the code could be held in two years time, although that is hypothetical and we have no plans to do that. The timetable for that might mean that the revised code would not be issued for several months. It might be useful for the Government to use the regulatory powers if an issue that requires a response surfaces. I do not say that that will happen, but we have useful powers that will allow the tiller to be adjusted as the new regime comes into effect to ensure that it works smoothly and without problems.