§ 46. Mr. Hooleyasked the Minister of Housing and Local Government what is the estimated aggregate additional financial burden per month on local authority expenditure in England and Wales created by a 1 per cent. increase in bank rate.
§ Mr. SkeffingtonLocal authority borrowing rates are not linked to Bank Rate. But if all interest rates rose by 1 per cent. the gross cost to local authorities in the first year would average about£2 million a month. But this would not be a net increase; part of this would be met by increased subsidies and grants.