§ 32. Mr. DUNCAN GRAHAMasked the Chancellor of the Exchequer whether the Public Works Loan Board are authorised to lend money for approved purposes to local authorities whose valuation is less than £250,000; whether he is 363 aware that the present rate of interest chargeable on such loans is 3f per cent.; and will he, in view of the pressing need for working-class houses, consider the advisability of reducing the rate of interest to local authorities?
§ Mr. HORE-BELISHAAs I stated yesterday in reply to a question by the hon. and gallant Member for North-East Bethnal Green (Major Nathan) it has been decided to reduce the minimum rate of interest on new advances made from the Local Loans Fund from 3⅝ per cent. to 3½ per cent. This will apply to advances made to local authorities on the security of local rates for any purposes of the Housing Acts on and after the 13th March. Local authorities are eligible for such advances if their valuation does not exceed £200,000 in England and Wales or £250,000 in Scotland.