HC Deb 11 March 1994 vol 239 c435W
Mr. Burns

To ask the Chancellor of the Exchequer what changes are proposed in the quotas for lending to local authorities by the Public Works Loan Board.

Mr. Kenneth Clarke

The Public Works Loan Commissioners have issued a circular today notifying local authorities of a change in the formula for calculating the quotas for 1994–95. The change reflects the Government's continued concern about the level of investments held by some authorities and the amount of market borrowing undertaken or proposed. A lower rate of interest will be payable on the majority of the quota. Interest rates on that amount of the quota equal to an authority's provison for credit liabilities will continue to be set near to, but just below, market rates.

A copy of the circular has been placed in the House Library.