Clause 7 - Credit arrangements
Local Government Bill
10:30 am
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
Because we will not have the credit approval system under the new prudential borrowing regime, I do not believe that the current level of restriction will apply in future. We are in the process of drawing up the regulations in respect of the revenue provisions of capital. Those announcements will have to be made in due course. There are particularly good reasons in many cases to give an incentive for authorities to consider and look at PFI as a way of transferring risk, but also ensuring swifter delivery of a result that may be desirable for that area. In designing the arrangements, we do not want to exclude the possibility that we will want to look more favourably at supporting PFI arrangements.