§ 38. Mr. Frank Allaunasked the Chancellor of the Exchequer if he will state approximately the amount of loans incurred by local authorities since 1945 and before the increase in interest rates in 1956 which matured for repayment in the last 12 months, the amount borrowed to replace these loans at high interest rates, the consequent increase in councils' annual expenditure, and its effect on council rents.
§ Mr. DiamondIt is not possible to give the figures for which my hon. Friend asks, since statistics of local authority borrowing are not collected in such detail.
§ Mr. AllaunIs my right hon. Friend aware that it is this burden of high interest rates on replacement loans which is the main cause of soaring council rents throughout the country? Will the Government therefore consider granting 4 per cent. loans for this purpose, as they already do—and it is a great thing—for new council house building?
§ Mr. DiamondI am glad that my hon. Friend appreciates the efforts which the Government have already taken to assist in this difficult matter, but I have no further announcement to make with regard to any further steps.
Mr. Edward M. TaylorIs the Chief Secretary aware that for some local authoties finance has become a nightmare under this Government owing to very high interest rates, and can he give any indication how much these rates have risen in the last three years compared with the previous three years?
§ Mr. DiamondIf the hon. Gentleman cares to put down a Question, I shall be only too glad to give him the information.