§ Mr. Dodsworth
asked the Chancellor of the Exchequer what is the increased cost in sterling terms of repaying currency loans incurred by local authorities relying on Treasury guarantees at the latest available date, compared with 14 days earlier.
§ Mr. Dell
Local authority borrowing is not guaranteed by the Treasury as to principal and interest. I assume, therefor, that the hon. Member is referring to the arrangements whereby the Treasury offer an exchange cover guarantee to borrowing in foreign currency for domestic purposes by local authorities and other public sector bodies. The sterling equivalent of loans outstanding by local authorities under these arrangements on 8th March 1976 and 22nd March 1976 was £664 million and £672 million, respectively.