§ 67. Mr. Swinglerasked the Chancellor of the Exchequer if he is aware of the harmful effects of the increased Bank Rate on local government finances; and if he will take steps to make credit available to local authorities at reasonable rates for essential projects.
§ Mr. P. ThorneycroftI cannot undertake to insulate any class of borrower from the effects of monetary policy.
§ 80. Mr. Doddsasked the Chancellor of the Exchequer in view of the serious situation arising from a succession of higher interest rates for owner-occupiers who have borrowed at flexible rates, what consideration has been given, or is to be given, to the introduction of financial measures to alleviate the present position and safeguard the future against further increases.
§ Mr. P. ThorneycroftThe Government cannot intervene between lender and borrower, and I cannot consider asking the House to insulate any particular class of borrower from the effects of monetary policy. I have, however, noted that at its meeting on 18th October the Council of the Building Societies Association decided to make no change in its recommendations relating to the rates of interest paid on investments or charged on mortgages.
83. Mr. H. Wilsonasked the Chancellor of the Exchequer if he will state his estimate of the direct additional cost of a 7 per cent. Bank Rate compared with a 5 per cent. Bank Rate on the National Debt Charge, the overseas balance, and on the interest and other charges of local authorities.
§ Mr. P. ThorneycroftNo. There is no direct connection between movements in the Bank Rate and in any of the costs mentioned.
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§ 85. Mr. Harold Daviesasked the Chancellor of the Exchequer if he is aware of the complaint made to the Stock Exchange Council that some people knew of the proposed Bank Rate increase the day before the public declaration of the Bank Rate increase; and if he will make a statement.
§ Mr. P. ThorneycroftI am informed that the Stock Exchange Council has received no complaint to this effect.