§ 44. Mr. TRAINasked the Secretary of State for Scotland what steps he proposes to take to ensure a reduction of the rate of interest on new loans to local authorities in Scotland to enable them to erect houses for slum clearance?
§ Mr. SKELTONIn so far as local authorities borrow money for housing purposes otherwise than by the issue of local bonds or from the Public Works Loan Commissioners, the rate of interest to be paid is a matter for each local authority who will no doubt negotiate loans in the open market or otherwise on the best available terms. As regards housing loans raised by means of the issue of local bonds, the standard rate for housing bonds is at present fixed at 3½ per cent, and the Treasury are prepared to give favourable consideration to applications for permission to borrow at a lower rate where any authority finds it possible to do so. Housing loans advanced by the Public Works Loan Commissioners are made at the minimum 1586 rate for the time being applicable to loans from the Local Loans Fund. This rate is fixed by the Treasury and is constantly under review.
§ Mr. TRAINIs it the case that the present rate charged by the Local Loans Board is 4 per cent, and that those local authorities 'who can borrow from the public can borrow at 2½ to 3 per cent. Will the hon. Member take steps to see that those authorities who are under the £250,000 valuation can get cheap money, in order that they may clear the slums, equally with the other authorities?
§ Mr. SKELTONI will convey my hon. Friend's observations to the Treasury.