§ Mr. BlunkettTo ask the Chancellor of the Exchequer what is his latest estimate of the effect of his decision to bring forward payments of revenue support grant to local authorities on the central Government borrowing requirement in 1990–91
§ Mr. Norman Lamont[holding answer 16 January 1990]Assuming current interest rates, there will be an interest cost of less than £100 million to central Government in 1990–91, compared with the situation if grant were still to be paid according to the present rate support grant profile. This has no effect on the PSBR, since local authorities will save the cost of borrowing the amounts brought forward.