HC Deb 16 February 1945 vol 408 cc526-7W
Mr. G. Hutchinson

asked the Chancellor of the Exchequer whether, in view of the fact that building societies have recently reduced their interest charges in respect of mortgages upon houses which have been demolished by enemy action, the Public Works Loans Commisioners will reduce the interest charged to local authorities upon loans required by them to make advances under the Small Dwellings Acquisition Acts so as to enable the authorities to reduce the interest charged in respect of advances made by them under these Acts upon houses which have been demolished by enemy action.

Sir J. Anderson

No, Sir. The money required for advances to local authorities out of the Local Loans Fund has been raised by the issue of Local Loans Stock. Since the rate to be charged on any such advance is, under statute, to be such as w ill enable the advance to be made without loss to the Fund, the rate was related to the rate payable on the corresponding issue of Stock. The latter rate cannot be varied during the currency of the stock, and it is therefore not possible, without risk of loss to the Fund, to vary the rate charged on the advance.