HC Deb 27 March 1913 vol 50 c1843W

asked the Secretary to the Treasury on what principle the amount which may be lent by the Public Works Loan Commissioners in any year is determined by the Government; whether they have regard solely to the requests for loans made for housing and other public purposes, or whether the amount is settled upon other considerations; whether the Public Works Loan Commissioners have the right to refuse to lend to local authorities in cases where such authorities have been authorised to borrow by the Local Government Board; and, if so, whether he is aware of cases where this has happened?


The practice is to fix the sum on consideration of the estimated amount which the Public Works Loan Commissioners will require to advance during the ensuing year for all purposes for which they are empowered to make loans, taking into account the amount to which they are already pledged (i.e., loans granted but not yet advanced) and the rate at which advances are proceeding. By Section 9 of the Public Works Loans Act, 1875, the Commissioners, in considering the propriety of granting a loan, are required to have regard to the sufficiency of the security for its repayment, and I am informed that they have refused loans to authorities who have been authorised by the Local Government Board to borrow in cases where the rates have been very high, or the indebtedness of the local authority very heavy, which they consider diminishes the value of their security.