§ Mr. BARNSTON
asked the Chancellor of the Exchequer whether he is now considering the reduction of the rate of interest at which county councils are empowered to borrow money for housing purposes?
§ Mr. LLOYD GEORGE
Local authorities are empowered to borrow money for housing purposes at the minimum rate allowed for the time being for loans out of the Local Loans Fund. Regard being had to the rates at which capital can at the present time be raised for the purposes of that fund, the grant of loans at any lower rate of interest would necessitate a direct Exchequer subsidy.