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Local Government: Bank Services

Volume 491: debated on Wednesday 22 April 2009

To ask the Secretary of State for Communities and Local Government pursuant to the answer to the hon. Member for Bromley and Chislehurst of 9 February 2009, Official Report, columns 1695-6W, on local government finance, if she will seek to obtain information on the levels of exposure of local authorities to the Madoff hedge fund. (268729)

I have no plans to seek further information on levels of exposure on local government finance due to investment in the Madoff hedge fund.

To ask the Secretary of State for Communities and Local Government what capitalisation directions to local authorities have been issued by her Department for back pay for equal pay claims to date; and for what value in each case. (269681)

Since 2006, the Government have issued over £1.1 billion in capitalisation directions to provide support for councils to deliver equal pay for thousands of employees.

In 2006-07, Communities and Local Government approved capitalisation directions for equal pay for 35 authorities totalling £160.5 million. A full list of these authorities and the sums they received is available at:

http://www.local.communities.gov.uk/finance/capital/cap0607appls.xls

The actual amount of capital expenditure used by individual authorities is available from their accounts.

In 2007-08, 46 applications for equal pay capitalisation were approved, totalling £500 million. The full list of authorities who received capitalisation directions, including the amount of capitalisation used is available at:

http://www.local.communities.gov.uk/finance/capital/equalpay0708.pdf

A further £455 million approved for 34 councils in 2008-09. The amount of capitalisation used by each individual authority will not be published until September 2009. However, a list of the councils who received directions is available at:

http://www.communities.gov.uk/news/corporate/977615