§ 28. Mr. Hamilton
asked the Secretary of State for Scotland the estimated additional sum required to be paid by local education authorities in the next financial year as a result of increased interest charges consequent on the raising of the Bank Rate from 3½ to 4½ per cent.
§ Mr. J. Stuart
Though precise figures are not available, it is estimated that the increase of¼ per cent. in the Public Works Loan Board rates will involve an additional annual charge of about £16,000 in respect of borrowing by education authorities from the Board. Education authorities also borrow from various other sources, and no estimate can be given of the increased charge in respect of this.
§ Mr. Hamilton
Would the right hon. Gentleman not agree that the additional charges that the local authorities will have to pay in interest will have an adverse effect on the development programmes in education? There is already considerable apprehension among local education authorities about the future prospects in education.
§ Mr. Stuart
Less than one-half of any increase falls on the rates. We have had alterations in the Bank Rate before now, and they have not always led to increases in the rates of the Public Works Loan Board.