HC Deb 20 June 1935 vol 303 cc541-2
43. Mr. THORNE

asked the Chancellor of the Exchequer the reasons why the Treasury has given instructions to municipalities who desire to raise loans that the rate of interest should be at least 3 per cent.; whether he is aware that the Glasgow Corporation refused to accept the advice of the Treasury for the £2,500,000 which the Glasgow Corporation desired to raise; the method by which this authority is raising the money required; and whether, in view of the additional burden put upon the ratepayers to meet the increased interest rate, he will now reverse his decision.


No such instructions or advice have been given by the Treasury, and the second and last parts of the question do not therefore arise. As regards the third part, I have no information.


May I take it for granted that before any loans are issued by the corporation there is collaboration between the Bank of England and the Treasury; and may I ask who is responsible for what I call "pegging" these municipal loans at 99 and 3 per cent.?


The Treasury have no responsibility.

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