§ 79. Mr. Frank Allaunasked the Secretary of State for the Environment what sum has been saved by the Government in housing subsidy to local authorities so far in 1971–72 by the reduction of interest rates on housing loans, compared with what it would have paid if market interest rates had not fallen; and how much it has saved in subsidy this year compared with 1966–67 because of the reduction in the number of council houses started in the two years.
§ Mr. ChannonThe representative rate of interest for 1971–72 is 8.32 per cent. compared with 9.23 per cent. for 1970–71. If the rate had remained at 9.23 per cent. for 1971–72, it is estimated that additional subsidies of the order of £4 million might have been payable for that year in respect of dwellings completed during that year.
Subsidies are based on the number of dwellings completed in a year, not on the number started.