§ 42. Mr. TurnerTo ask the Chancellor of the Duchy of Lancaster what is the estimated cost to industry of the rise in interest rates since 9 May.
§ Mr. NewtonBank base rates fell from 8 per cent. to 7½ per cent. on 18 May and have since risen in stages. The cost to industrial and commercial companies to date compared with the cost if base rates had remained at 8 per cent. since 9 May is estimated at about £700 million. The hon. Member should bear in mind that a 1 per cent. interest rate increase, even if sustained for a full year, costs industrial and commercial companies far less than a one percentage point increase in pay settlements.