HC Deb 28 July 1953 vol 518 cc1074-5
20. Mr. Emrys Hughes

asked the Chancellor of the Exchequer if he will make inquiries into the expenditure incurred by local authorities in floating new loans

Mr. R. A. Butler

I see no reason to interfere with the freedom of local authorities to make their own arrangements for raising loans.

Mr. Hughes

Is the Chancellor aware that some local authorities want to borrow money for shorter periods than 20 years? Is he aware that these authorities have been compelled to go to the privately organised moneylenders, who make considerable charges?

Mr. Butler

There is a variety of facilities for local authorities. I am glad to say that we have now added this further one, of letting them return to their old practice of going into the market. I should not like to interfere with the discretion of local authorities to choose which method they think best.

Mr. Nabarro

Has my right hon. Friend observed the signal success of his policy in encouraging local authorities to go to the money market, as has been evidenced by the great success of loans floated by the cities of Birmingham and Liverpool?