§ 58. Mr. Austinasked the Chancellor of the Exchequer whether he is aware of the increases in rentals which have resulted from the raising by the Public Works Loan Commissioners of the rate of interest on loans to local authorities from 2½ per cent. to 3 per cent.; what was the reason for this increase; and whether it is now intended to revert to the 2½ per cent. rate of interest.
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§ Mr. Glenvil HallI am advised that increases in rents of local authority houses have been imposed by local authorities for a variety of reasons, of which an increase in interest rates is only one. The rates of interest charged for advances from the Local Loans Fund are fixed from time to time to correspond broadly with Government borrowing rates for comparable periods. At present, there is no ground for altering the rates now current.