§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer whether, in view of the increase in local authority borrowing, and the undertakings given to the International Monetary Fund by his predecessor in paragraph 11 of his Letter of Intent, he will now rescind the entitlement of local authorities to reimbursement of the excess in the average cost of their borrowing for house-building purposes over 4 per cent.
§ Mr. MacCollI have been asked to reply.
Local authority borrowing for housebuilding is necessary for the pursuit of the Government's housing policy and its volume is limited by Ministerial controls of the housing programme and of housing costs. The purpose and effect of the subsidies is to reduce the cost of borrowing which falls on local authority tenants. This policy in no way conflicts with the expectations expressed in paragraph 11 of the Letter of Intent regarding bank credit and the growth of the money supply.
§ Mr. Bruce-Gardyneasked the Chancellor of the Exchequer what was the cost to public funds of subsidies paid to local 258W authorities to compensate them for the cost of borrowing money at more than 4 per cent. for building purposes in the latest period of 12 months for which figures are available.
§ Mr. MacCollI have been asked to reply.
Payments of these subsidies in the 12 months ended 31st March, 1968, amounted to £11,764,057, the cost in England, Scotland and Wales respectively being £9,950,541, £1,424,976 and £388,540.