§ 30. Mr. Allaunasked the Chancellor of the Exchequer how the Government's action in raising the Bank Rate will affect the rate of interest on housing loans issued by the Public Works Loan Board.
§ Mr. H. MacmillanThe rates of interest for loans from the Public Works Loan Board are not determined by the Bank Rate but reflect the credit of local authorities of good standing in the market for loans of comparable periods.
§ Mr. AllaunIs the Minister aware that this, with the ending of subsidy on many houses, will mean an increase in rents of £1 6s. 9d. a week on a £1,750 council house since the 1951 Election? Is this mending the hole in the purse, or is it a deliberate attack on the workers' standard of living?
§ Mr. MacmillanIt is neither. I remind the House that since the 1951 Election more houses have been built for the people than ever before in our history.
§ Mr. LindgrenIs not the right hon. Gentleman aware that already there have been five changes in the rates of interest for local authority operations in the last twelve months? Is he aware that local authorities are very worried, in arranging their programmes, about the effect of the Bank Rate and the frequently fluctuating 182 rates of interest which, from a purely business point of view, make it almost impossible for them to programme work accurately?
§ Mr. MacmillanI do not know what the hon. Member means by "from a purely business point of view." The short-term rates of interest have always in our history gone up and down.