HC Deb 09 March 1965 vol 708 c36W
32. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what steps he now proposes to take to mitigate the effect of the 7 per cent. Bank Rate on the housing programmes of local authorities with long-term borrowing commitments in excess of £500,000.

Mr. Callaghan

My decision to leave the lower set of Public Works Loan Board rates at the levels ruling before the Bank Rate increase benefits any authority, regardless of the size of its borrowing requirement, raising a loan from the Board within its annual quota.

46. Mr. W. T. Williams

asked the Chancellor of the Exchequer what would be the cost to the Exchequer of reducing interest charges to local authorities for housing purposes to 3½ per cent. and 4 per cent., respectively.

Mr. Callaghan

On the basis of the present arrangements for local authority borrowing and of current interest rates the cost to the Exchequer would be about £60 million and £50 million in the first year respectively, rising heavily in subsequent years.