§ 63. Dame Joan Vickersasked the Chancellor of the Exchequer whether he is aware that local authorities are having to borrow large sums of money on short-term loans, much in excess of previous practice; and what steps he will take to set a limit to such borrowings.
§ Mr. CallaghanLocal authorities are already on notice that limits on their temporary borrowing will come into force in April 1968 and I see no reason to introduce additional requirements at the present time. I hope that excess temporary debt will be reduced over the next three years.
§ 64. Dame Joan Vickersasked the Chancellor of the Exchequer if he is aware that local authorities are having to borrow at rates sometimes up to 8 per cent.; and what effect he estimates this will have on housing programmes.
§ Mr. CallaghanI am glad to say that the rate of 8 per cent. did not persist for long and I would not in any case expect temporary borrowing rates to affect housing programmes materially.