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People who become owner-occupiers have to find the money somewhere. Banks will be the main source of that money and at the moment not many banks are willing to get involved in such schemes.
HS has adopted the tack of managing capital charges centrally, which illustrates the emphasis that I put on the role of senior management. The cash balances—the bank account—have always been managed centrally, and that will continue to be the case in Historic Scotland.
After all, they spent most of the past week adopting good, sensible Liberal Democrat policies, particularly on the independence of the Bank of England and the setting of interest rates.
On the other hand, if there were an improvement in the economy, local authorities would have an additional resource that could be banked and held in a stability account.
In some ways, it is like Gordon Brown's decision to pass control of interest rates to the Bank of England—not so much evidence of good economic management as an exercise in belated learning from our European neighbours.