§ Mr. John Morris
To ask the Secretary of State for Wales what guidance has been given to local authorities as regards the gross rate of interest to be paid for by council mortgages.
§ Mr. Gwilym Jones
Under the provisions of section 438 and schedule 16 of the Housing Act 1985, local authorities are obliged to set their mortgage interest rate at the higher of the "standard national rate" or the "local average rate".
A revised standard national rate of 8.01 per cent. was declared, and notified to authorities, on 26 February and came into effect on 1 March. On 2 March, the Local Authority Mortgage Interest Rate Determination 1993 was issued to authorities setting out a revised method of calculating the local average rate.