Orders of the Day — Local Government Bill

Part of the debate – in the House of Commons at 5:19 pm on 3 March 1987.

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Photo of Jack Straw Jack Straw Shadow Spokesperson (Environment, Food and Rural Affairs) 5:19, 3 March 1987

I am grateful for the opportunity to come back on this point. The direct answer to the questions is that in government we would review the situation. [Laughter.] There is no point in laughing at this, as Conservative Members are. We do not know, and neither does the Minister, the full extent of indebtedness of individual local authorities until that indebtedness arises in a particular year.

Secondly, I should have thought that the Minister would approve of the point that the expenditure incurred should be counted in the year in which it takes place rather than in any future year. Thirdly, if these authorities are as reckless as the Minister suggests, how does he explain why the Government-controlled Public Works Loan Board has not been reducing its lending to London boroughs such as Haringey? It has increased lending to these boroughs quite dramatically in the past four years so that, for example, in Haringey's case, 50 per cent. of its debt four years ago was accounted for by the board while today 82 per cent. is accounted for by the board. Why have the Government increased their lending to such boroughs if they have been so reckless?