HC Deb 22 March 1956 vol 550 c1460
33. Mr. Allaun

asked the Chancellor of the Exchequer what rate of interest is to be charged by the Public Works Loan Board on future housing loans.

Mr. H. Brooke

There is no separate rate for housing loans: the lending rates of the Board apply without distinction to all purposes for which local authorities are authorised to borrow. The terms of future loans will depend on the course of interest rates.

Mr. Allaun

But will the Minister advise the Board that the recent rise in the Bank Rate will not mean a further increase in the already excessive interest charges on housing loans? Will he drop the new procedure of forcing local authorities to attempt to borrow elsewhere at even higher rates?

Mr. Brooke

There is no distinction here between housing loans and other loans, but unquestionably the policy that was announced by my right hon. Friend the Lord Privy Seal, when he was Chancellor of the Exchequer, in October of last year must stay.