Local Government Finance

Communities and Local Government written question – answered on 13th September 2006.

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Photo of John Hemming John Hemming Liberal Democrat, Birmingham, Yardley

To ask the Secretary of State for Communities and Local Government if she will increase the limit for capitalisation of local government spending from that announced at the Capital Programme Working Party on 26 May.

Photo of Phil Woolas Phil Woolas Minister of State (Local Government & Community Cohesion), Department for Communities and Local Government

We have no plans to increase the limit for capitalisation of local government spending from that announced at the Capital Programmes Working Party. Local authority capitalisation presents a significant risk to the prudent management of national fiscal rules and needs to be managed closely.

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