Clause 8 - Control of credit arrangements
Local Government Bill
11:15 am
Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)
I can only seek to explain as far as I can the specifics of the point that the hon. Gentleman has now raised, which is slightly different from the amendments. [Interruption.] I cannot be sure what was intended by the amendments. My understanding is that there is a level-playing-field treatment of the cost of a credit arrangement to borrowing, insofar as the prudential regime test examines the revenue obligations that fall on an authority in making those payments, whether by normal borrowing arrangements or by credit agreement. Given that servicing costs are excluded from the cost of a credit arrangement, we are looking at the proportion of that credit agreement that falls on the authority's revenue commitments in one year—
It being twenty-five minutes past Eleven o'clock, The Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till this day at half-past Two o'clock.