§ Mr. Blenkinsopasked the Minister of Housing and Local Government whether he is aware that the basis on which local authorities are at present required to provide for capital repayments imposes an undue current burden upon them; and whether he will help by authorising them to amortise capital expenditure on the basis of a more realistic rate of interest than the 3½ per cent. now generally allowed.
322W
§ Mr. GreenwoodI am aware of the problem which especially affects authorities which have large and increasing building programmes. I have already told local authorities with consolidated loans funds that they may base their provision for capital repayments on a rate of interest of 5 per cent., and this will reduce the rate of provision which needs to be made. I have now amended the Local Authorities (Sinking Fund) Regulations to give similar help to local authorities with mortgage loans pools.