Housing Needs Expenditure

Part of Oral Answers to Questions — Environment – in the House of Commons at 12:00 am on 1 April 1987.

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Photo of Hon. Nicholas Ridley Hon. Nicholas Ridley , Cirencester and Tewkesbury 12:00, 1 April 1987

The hon. and learned Gentleman may not understand the system. Allowing an increased proportion of receipts to be spent means that local authorities go out and borrow more. Local authorities are indebted in total to the extent of over £30 billion, and any increase in spending will lead to an increase in debt. The Government do not mind a bit whether spending takes the form of so-called capital receipts or of increased allocations. The point is to determine the best way of helping authorities in need. Is it receipts, or allocations? I would have thought that the hon. and learned Gentleman would look to the interests of his constituents and realise that allocations will be of more use to them.