HC Deb 26 March 1934 vol 287 cc1636-7
52. Mr. E. WILLIAMS

asked the Financial Secretary to the Treasury whether he is prepared to advise the Public Works Loans Board that, in view of the low interest charges obtaining on war stock and bank deposits, they should further reduce the interest charges upon public borrowings?

Mr. HORE-BELISHA

As the hon. Member is aware, the rates applicable to new advances from the Local Loans Fund were reduced as from the 13th March. It is not possible to reduce the rates applicable to existing advances without endangering the solvency of the fund.

Mr. WILLIAMS

Is the hon. Member aware that that was so infinitesimal that it cannot be hoped to give very much relief to local authorities?

Mr. HORE-BELISHA

It may have been small, but at any rate it was something, and the rate at which we lend depends on the rate at which we can borrow.