§ 4. Mr. Murtonasked the Minister of Housing and Local Government what is his forecast of the future level of interest rates on borrowing; and what help will be made available to local authorities who have had to suspend certain capital projects.
§ Mr. SkeffingtonAs the hon. Member may be aware, it is not the practice of Ministers to make predictions about the future level of interest rates. Local authorities in fact receive very substantial help towards meeting interest charges through the Housing Subsidies Act, 1967, the rate support grants and various specific grants.
§ Mr. MurtonSurely the hon. Member is aware of the dismal record of his Government in these matters. Is he not aware that a great element of uncertainty pervades local government and that they do not know where they will be—until they know what will be the next rate support grant? Will he not give very close consideration to this matter, because it is most unfair to many local authorities who at present have capital projects suspended?
§ Mr. SkeffingtonI am not aware of the situation which the hon. Member describes. I was drawing attention to the fact that massive help is available under the Housing Subsidies Act—far more help than has ever been given 191> before under any Administration—and that the contribution from the Exchequer is 56 per cent. of the total local government expenditure.