HC Deb 21 January 1964 vol 687 cc892-3
19. Mrs. Slater

asked the Minister of Housing and Local Government and Minister for Welsh Affairs what was the amount of interest rate paid by local authorities for 1950–51. 1961–62 and 1962–63.

Sir K. Joseph

The average rate of interest paid by local authorities in England and Wales on their outstanding debt in 1950–51 was 3.4 per cent., and in 1961–62 4.9 per cent. Final figures are not yet available for 1962–63, but I estimate that the rate will be about 5 per cent.

Mrs. Slater

Can the right hon. Gentleman follow that up and tell me what will be the difference to local authorities, in terms of millions of pounds? In view of the Answer he gave to my hon. Friend the Member for Salford, East (Mr. Frank Allaun), in reply to a previous Question, does not he think that he ought to have another think about the effect that these interest rates are having on local authorities who are particularly concerned with his own Department?

Sir K. Joseph

The answers to those two supplementary questions are. "Not without notice", and, "No".

Mrs. Slater

Cannot he confirm that the difference in the amounts is the difference between about £17 million in 1950–51 and £200 million at present? If that is true, does it not show at least what the period in office of this Government has done to local authority spending?

Sir K. Joseph

Yes, but during that same period the subsidy from the taxpayer has trebled.