Mr. Alan Lee Williamsasked the Chancellor of the Exchequer whether there will be any alteration in the housing rate subsidy interest rates to local authorities as a result of the new economic measures.
§ Mr. MacCollI have been asked to reply.
The general effect of the Housing Subsidies Act 1967 is to enable local authorities to provide new housing at a fixed interest rate of 4 per cent. Consequently any increase in borrowing rates will be taken into account in determining future rates of subsidy on new housing.