§ Mr. Rentonasked the Secretary of State for the Environment whether the provisions of the Rates Bill will in any way reduce or affect the security of United Kingdom local authority debt, so far as either income or capital are concerned.
§ Mr. Patrick JenkinIt is inconceivable that rate limitation could force an authority into default on its loan debt.
The White Paper "Rates" (Cmnd. 9008) made clear that present arrangements for the security of loans and the protection of lenders would be maintained. The rate limit set for authorities will have regard to necessary expenditure levels and will not be such as to constrain authorities' revenues unreasonably. All loans — both principal and interest—will continue as now to have priority as a charge on those revenues.