HC Deb 03 December 1963 vol 685 cc952-3
4. Mr. Swingler

asked the Chancellor of the Exchequer if he will now take steps to enable local authorities to obtain loans at lower rates of interest for housing and other socially desirable purposes.

The Chancellor of the Exchequer (Mr. Reginald Maudling)

If the suggestion is that local authorities should obtain their loans at subsidised rates of interest, then I could not agree.

Mr. Swingler

Why are the Government prepared to grant loans at specially low rates of interest for some projects—for example, Cunard—but not for the generally desirable projects of promoting as rapid an expansion of housing, school building and other such things as possible? Is it not essential to distinguish between things which are really urgent and those that are less urgent? Is not one of the most vital things to provide local authorities with the finance to speed up the housing programme?

Mr. Maudling

I think that the hon. Gentleman has failed to recognise that grants to local authorities, which is the way in which we help them, will be over £1,000 million during the current year.

Mr. Frank Allaun

Is the Chancellor of the Exchequer aware that all over the country council tenants, some of them faced with the fourth rent increase in four years, are fighting mad about this and they are blaming their own councils, which are the scapegoats for Government high interest rates? Will the Government reconsider reintroducing the 3 per cent, maximum rate which applied under the Labour Government?

Mr. Maudling

No, Sir. Our assistance to local authorities is very large and is growing. We think that the right way to subsidise local authorities is in this more open way rather than by providing hidden subsidies in the form of artificial rates of interest.

Mr. Swingler

Does not the Chancellor of die Exchequer realise that high interest charges are the greatest obstacle to the expansion of the social services at the moment?

Mr. Maudling

It would appear from the expansion which has taken place in the social services in the last ten years that there have not been very many obstacles.