§ Mr. Adleyasked the Chancellor of the Exchequer what he estimates will be the additional financial costs to local authorities' borrowing expenditure, pursuant to his decision relating to tax assessment on bond washing; and if he will make a statement.
§ Mr. MooreThe effect of the decision relating to bondwashing on the overall borrowing costs of local authorities is likely to be insignificant. Most forms of local authority borrowing, in particular from the Public Works 257W Loan Board and from the money market, are not affected at all. Local authority borrowing through the issue of bonds represents a very small proportion of their total borrowing. To the extent that the cost of borrowing through the issue of bonds may rise, local authorities can of course obtain funds for periods of one year and above at highly competitive rates from the Public Works Loan Board, and from the money market for shorter periods.