Mr. Edward M. Taylorasked the Secretary of State for Scotland what will be the additional monthly cost to Scottish local authorities of borrowing, in view of the raising of Bank Rate to 8 per cent.; and what steps he is taking to minimise this additional burden.
§ Mr. RossThere is no direct link between the Bank Rate and the rates at which local authorities borrow. Any substantial increase in the cost to local authorities of servicing their capital debt will be taken into account for Rate Support Grant.