HC Deb 25 June 1957 vol 572 cc10-1
17. Mr. Hunter

asked the Chancellor of the Exchequer whether he has considered the letter sent him by the Urban District Council of Feltham, asking him to consider relaxing restrictions upon local authorities borrowing from the Public Works Loan Board for capital expenditure; and what action he proposes to take.

The Chancellor of the Exchequer (Mr. Peter Thorneycroft)

Yes, Sir. But I am not prepared to make the change of policy suggested.

Mr. Hunter

On that point I should like to ask the Chancellor if he will review the matter again as soon as possible. The restrictions on local authorities in borrowing from the Public Works Loan Board are causing them extra expense in interest charges and holding up urgent work.

Mr. Thorneycroft

But any attempt to conceal the shortage of capital which exists could only be inflationary and force up the cost of living.