Clause 4 - Imposition of borrowing limits
Local Government Bill
8:55 am
Mr Derek Conway (Old Bexley and Sidcup, Conservative)
With this it will be convenient to discuss new clause 2—Imposition of borrowing limits (No. 2)—
'—.(1) The Secretary of State may by regulations set limits in relation to the borrowing of money by local authorities.
(2) The Secretary of State may only make regulations under subsection (1) if the Code for Fiscal Stability, as provided for in section 155 of the Finance Act 1998, would otherwise be breached in any way.
(3) Before the Secretary of State may make regulations under subsection (1), the Treasury must prepare and lay before Parliament a document which shall be subject to approval by a resolution of the House of Commons explaining how the Code for Fiscal Stability would otherwise be breached if limits were not set in relation to the borrowing of money by local authorities.
(4) It shall be the duty of the Comptroller and Auditor General to examine the Treasury's document published under subsection (3) and report to the House of Commons his findings.'.