§ 65. Mr. Hoyasked the Secretary of State for Scotland what extra interest charges will fall to be met by local authorities in Scotland as a result of the decision to increase the Bank Rate; and what action he is taking to prevent increases in local rates as a result of this action.
§ Mr. MaclayChanges in the Bank Rate have only an indirect effect on the rates at which local authorities borrow and, as interest rates will vary depending on the ptriod of loans, it is not possible to estimate the amount of extra interest charges which may be payable. No doubt the effect on their rates will be one of the factors that individual local authorities will take into account when deciding what capital schemes they might appropriately postpone in present circumstances.