Local Authorities Loans (Interest)

HC Deb 08 November 1949 vol 469 cc100-1W

57. Mr. Osborne

asked the Chancellor of the Exchequer at what rate of interest is the Public Works Board lending money to local authorities; and at what rate and from whom does it borrow.

Sir S. Cripps

The rates charged to local authorities are:

	Per cent.
Loans for not more than 5 years	2
Loans for more than 5 years but not more than 15years	2½
Loans for more than 15 years	3

Advances are made to local authorities from the Local Loans Fund which is financed by issues from the Consolidated Fund under Section 3 (1) of the Local Authorities Loans Act, 1945. Under Section 3 (3) of that Act, the Treasury has directed that the rates at which interest is to be paid on sums issued from the Consolidated Fund to the Local Loans Fund shall correspond as nearly as possible with the rates charged to local authorities.