§ Brigadier-General CLIFTON BROWN
asked the Chancellor of the Exchequer whether he is aware that loans applied for by local authorities for the purpose of the Housing (Rural Workers) Act, 1926, have recently been charged an extra half per cent.; what is the reason for this increase in interest; and whether it applies to all loans from Government to local authorities?
§ Mr. PETHICK-LAWRENCE
Interest upon loans to local authorities for the purposes of the Housing (Rural Workers) Act, 1926, is charged at the minimum rate obtaining for loans from the Local Loans Fund. The rate was raised by one-quarter—not one-half—per cent. as a consequence of the cost of the Local Loans Stock set up in October last.