§ 33. Mr. Hoyasked the Secretary of State for Scotland the total value of local government rate-borne expenditure for the years 1950–51 and 1962–63, respectively, and the total amount of interest charges paid by Scottish local authorities for each of these years.
§ Mr. NobleRate-borne expenditure of Scottish local authorities in 1950–51 was £32.2 million and interest charges amounted to £8.6 million. Information for 1962–63 is not yet available, but provisional figures for 1961–62 are £93.6 million and £42.9 million, respectively.
§ Mr. HoyDo not these figures prove just how intolerable the burden is becoming for local authorities in Scot- 1070 land because of the high interest rates which are being forced upon them by the policy of the Government? What will the Secretary of State do about it?
§ Mr. NobleIf the hon. Member had asked me, I might have told him that the amount of Exchequer grants went up in roughly the same period from £39.9 million to £113.4 million. I regard this as fair. The question of interest rates is, surely, connected with grants, and the grants take into account the interest rates current at the time.
§ Mr. HoyThe right hon. Gentleman must be aware that this intolerable increase of nearly 500 per cent. in the interest rates over this period makes the burden upon local authorities intolerable. What is he doing to ease the burden that this is causing to local authorities?
§ Mr. NobleI have already answered the hon. Member. The Government have increased their grants by nearly four times. I regard this as easing the burden.