§ 56. Mr. Frank Allaun
asked the Chancellor of the Exchequer approximately how much it would cost the Exchequer annually to allow the Public Works Loan Board to reduce to 3 per cent. the rate of interest on council houses completed in the last financial year from the current rate for 60-year Board loans, and to permit local authorities to make all their housing borrowings at this second-tier rate.
§ Mr. Callaghan
The reply to the first part of the Question is about £9 million per year and to the second part about £50 million in the first year. The cost would rise heavily in subsequent years. 11W I would also remind my hon. Friend that local authorities do not normally borrow for as long as 60 years and that they borrow for housing on the market as well as from the Public Works Loan Board.
§ Mr. Wingfield Digby
asked the Chancellor of the Exchequer at what rate the Public Works Loan Board are now lending to local authorities; and what was the rate of interest a year ago.
§ 2. Mr. Callaghan
The information requested is:
1. On loans within an authority's quota* Period of Loan Repayable at maturity Per cent. Repayable by annual instalments Per cent. Up to 5 years 5⅝ 5⅝ Over 5 but not over 10 years 5⅞ 5⅝ Over 10 but not over 15 years 6 5¾ Over 15 but not over 25 years 6⅞ 5⅞ Over 25 years 6 6 * i.e. the loans which an authority is entitled to borrow from the Public Works Loan Board.
On loans advanced by the P.W.L.B. as lender of last resort
As from tomorrow the rates will be increased and will then be:—
Period of Loan Repayable at maturity Per cent. Repayable by annual instalments Per cent. Up to 5 years 7 7 Over 5 but not over 10 years 7 7 Over 10 but not over 15 years 7 7 Over 15 but not over 25 years 6⅞ 7 Over 25 years 6⅞ 6⅞
RATE IN FORCE ON 19TH JANUARY, 1964
All loans for all periods (repayable by annual instalments) … … … 5¾ per cent.