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Local Government Finance

Volume 167: debated on Wednesday 14 February 1990

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To ask the Chancellor of the Exchequer if he will make a statement on the implications for economic policy of a 15 per cent. increase in local authority spending in 1990–91.

The Government's firm control of public expenditure, and the reduction in general Government expenditure as a share of gross domestic product, have played a major part in the successful conduct of economic policy. The Government are determined that this should continue. There is no doubt that an increase of that order in local authority spending would be unhelpful, and would impose a heavy burden on community charge payers, for which the responsible local council would be accountable.