HC Deb 31 July 1956 vol 557 cc1143-5
50. Mr. Proctor

asked the Chancellor of the Exchequer if he will take special measures to assist the voluntary schools by providing capital at 3½ per cent. instead of the higher rates which have followed as a result of the increased Bank Rate.

Mr. H. Macmillan

I regret that this proposal is not practicable.

Mr. Proctor

Does the Chancellor not realise that the managers of voluntary schools are in a very grave position? Does he not know that in one case brought to my notice the interest rates have gone up from £115 to as much as £200 a week? Does the right hon. Gentleman not realise that he has disrupted their plans, broken their hearts and sacrificed them to the financiers of the country in his dear-money policy?

Mr. Macmillan

I realise that the problems exist, and I regret them, but I do not think that the Government could lend at a lower rate than they have to pay themselves.

Mr. Stokes

In view of the fact that these people are providing a national necessity, is it not possible for the right hon. Gentleman to arrange for them to borrow money on at least as good terms as through the Public Works Loan Board?

Mr. Macmillan

I think that the rate of interest is the same as the long-term rate of interest of the Public Works Loan Board.