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ASSOCIATIONS ANGRY AT GUMMER REFUSAL TO EXTEND RECEIPTS HOLIDAY

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At the meeting with Environment Secretary John Gummer yesterday local authority association leaders were told there...
At the meeting with Environment Secretary John Gummer yesterday local authority association leaders were told there will be no extension of the capital receipts 'holiday' which is allowing local authorities to spend cash raised from land and property sales on new construction, the associations announced last night.

In a joint statement the leaders of the Association of County Councils, Association of District Councils and the Association of Metropolitan Authorities said: 'We know that the Confederation of British Industry and the construction industry will share our disappointment that £500 million of construction industry spending will not now take place as a result of a policy decision taken by the government.'

After their meeting with Mr Gummer the Association's leaders said a gap of more than £1 billion already exists between local authority expenditure this year and the government's target. If the government insists on restricting next year's spending to this year's inadequate target figure then extensive cuts in services would result they said.
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