The GLC reports to its shareholders

<p>I am pleased to report that the financial position of the Council continues to be strong and stable. After 4 years of contraction in which the increase of revenue expenditure has been less than half of inflation, both current and capital expenditure in 1981/82 will be within the budget provision made by last year's Board of Directors before they were changed. Certain adjustments as to the proportions paid by different groups have run into temporary difficulties. The credit position of the Council bearing the name London, remains sound, the policy of borrowing only for housing, the action taken to lengthen the Council's loan debt structure, and the practice of very limited temporary borrowing are well recognised by the lenders. They have enabled the Council to finance the continuation operations of its major subsidary, London Transport, as we work our way through a problem which, given good will, need only be temporary.</p>