HC Deb 25 March 1952 vol 498 cc26-7W
57. Sir H. Williams

asked the Chancellor of the Exchequer on what terms it is proposed to lend to the local authorities the £360 million which is being raised out of taxation for this purpose.

Mr. R. A. Butler

I assume what my hon. Friend has in mind is the provision of money from the Consolidated Fund for the purpose of enabling the Public Works Loan Board to lend money to local authorities. The rates of interest at present being charged on such loans are as followsLoans for not more than five years—2¾ per cent. Loans for more than five years but not more than 15 years—3¾ per cent. Loans for more than 15 years—4¼ per cent.

60. Mr. Sparks

asked the Chancellor of the Exchequer to what extent the present rates of interest charged to local authorities by the Public Works Loan Board contain an element of concealed subsidy.

Mr. R. A. Butler

As I stated on 7th November last, our policy is to avoid a concealed subsidy. The rates charged by the P.W.L.B. are adjusted from time to time with this and other considerations in mind. For the reasons which I explained on 17th March, I see no occasion to make any change at present in the rates currently charged.