Lord Jamieson (Con)

My Lords, this new clause would require the Secretary of State to report on the exercise of powers to borrow money by strategic authorities and their ability to repay the debts incurred. I thank the Minister for her correspondence on powers to borrow after this was debated in Committee. As the previous group focused on precepts, we felt it worth discussing powers to borrow in isolation. In Committee, we asked one key question: who, in effect, is the guarantor in the event that an authority cannot pay back its borrowing? I appreciate the Minister’s clarification that constituent councils will not be held liable for debts incurred by the authority. However, this is an important area that requires thorough oversight, which is why we tabled Amendment 80 to require the Secretary of State to report on the exercise of powers to borrow money by the strategic authorities and their ability to repay debts incurred. Surely one of the aims of the Government’s plans is to put local government on a stable and sustainable financial footing. To be clear, we do not object to the ability of authorities to borrow money, but we do think that the Secretary of State and, crucially, Parliament should be aware of the facts. This report would be published, copies would be placed before both Houses of Parliament annually, and it would include an assessment of the ability of specific authorities to meet the debts incurred. This would give Parliament oversight of how much debt has been incurred by specific authorities across the country, as well as their ability to repay that debt. The information could then inform future debates and decision-making about the health of local government finances, and it would no doubt be of use to Secretaries of State themselves. I hope the Government will give this amendment their consideration.