§ Mr. Sedgemore
asked the Secretary of State for the Environment what is the current position on Government loans to building societies; and what has been the cost to the taxpayer thus far of subsidising these loans.
§ Mr. Freeson
Of the £500 million loaned to the building societies in 1974, £186 million has so far been repaid. All loans have been made at the rate of 10½ per cent. The only voted expenditure in addition to the loans themselves has been a payment of £555,270 to the Bank of England to cover the difference between the bank's minimum lending rate and the 10½ per cent. charged by the bank on the first £100 million of loans.