HC Deb 04 February 1954 vol 523 cc545-6
34. Mr. Lewis

asked the Chancellor of the Exchequer if he is aware of the difficulties confronting many of the poorer local authorities in finding the necessary capital to ensure a satisfactory housing programme; that, under the present arrangements, due to the high interest rates charged on borrowed money, these councils have to charge such high rents that many of those in most urgent need of accommodation cannot afford to take possession of new houses; and whether he will consider in his forthcoming Budget making some arrangement whereby local authorities will be able to borrow money free of interest for housing purposes.

Mr. Boyd-Carpenter

I am unaware of the difficulties to which the hon. Member refers. The rates of interest paid by local authorities on their borrowings are not out of line with market rates generally. The answer to the last part of the Question is "No, Sir."

Mr. Lewis

Is the right hon. Gentleman aware that there are local authorities which are in the greatest financial difficulties, particularly my own borough of West Ham? They are finding it very difficult indeed to be able to pay their loan interest charges and keep their rents down to a reasonable level. Is he aware that many councils have to charge such high rents for their council houses that the poorest section of the population cannot afford to pay them?

Mr. Boyd-Carpenter

I am aware that the county borough of West Ham has certain difficulties, but I think the hon. Gentleman will appreciate that they arise from circumstances connected with the war, and have very little to do with the subject matter of the Question. As far as the latter part of his supplementary question is concerned, he will remember that the Public Works Loans Board rate was reduced from 28th October last.