§ 29. Mr. Allasonasked the Minister of Housing and Local Government what is the estimated increase in cost in housing subsidies per month resulting from the increase in Bank Rate in February, 1969.
§ Mr. MacCollChanges in Bank Rate affect the amount of housing subsidies for dwellings completed in the following financial years to the extent that the changes affect the interest rates on loans raised by recipient authorities. No estimate can at present be made of the increase in cost of housing subsidies in future years attributable to the increase in Bank Rate in February, 1969.
§ Mr. AllasonWill the Ministry be getting the full necessary increase from the Treasury, or will there be a shortfall and a consequent reduction in the authorisations of, or possible delays in, council house building resulting from the increase?
§ Mr. MacCollThe figures are negotiated and fixed at the beginning of each year, so it is not possible now to tell 1261 what they are. One great advantage is that the subsidies are adaptable to increased rates of interest. They are not stuck at £24, like the last one was.