§ 47. Sir B. PETOasked the Financial Secretary to the Treasury whether his attention has been called to the burden which is placed upon the owner-occupiers of small houses, purchased under the Small Dwellings Acquisition Acts, due to the high rate of interest on loan advances to local authorities by the Public Works Loan Board; and whether, in view of the present low rate of current interest, he will take steps to arrange for a reduction in the rate of interest charged by the Public Works Loan Board?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Duff Cooper)Since the liability of the State to ensure the payment of interest on Local Loans Stock is a continuing one and is not affected by the current rate of interest, the conces- 1587 sion suggested by my hon. Friend would involve a direct subsidy which the Government are not prepared to ask the taxpayer to provide.