§ Mr. Keyasked the Secretary of State for the Environment (1) if he is satisfied with the current requirements of section 110 of the Housing Act 1980—Local Authority Interest Rates — relating to the determination of the local average rate at six-monthly intervals;
(2) if, in view of the fact that general interest rates for mortgage loans are reducing and change at more frequent intervals than the six months provided for under section 110 of the Housing Act 1980, he will take steps to vary the requirements so that the local average rate is redetermined whenever a revised standard national rate is declared.
§ Sir George YoungI am satisfied that, for the time being, the local average rate should continue to be redetermined every six months. The local average rate reflects the authority's borrowing costs, and these costs do not necessarily change at the same time, or as quickly, as building society interest rates, on which the standard national rate is based.