§ Mr. MaddenTo ask the Secretary of State for Education and Science if he will make it his policy to reduce the residential qualification for mandatory grants especially in cases where applicants wish to take courses necessary in obtaining a teaching qualification.
Mr. JacksonNo.
Loans charges paid 1983–84 1984–85 1985–86 1986–87 1987–88 £ million £ million £ million £ million £ million Aberdeen 25.1 28.9 29.6 28.5 32.6 Dundee 20.7 23.7 26.3 27.3 34.3 Edinburgh 35.4 41.6 41.0 42.2 45.8 Glasgow 126.1 142.1 155.7 160.6 167.9
§ Mr. SillarsTo ask the Secretary of State for Scotland what is his estimate of the effect of current interest rates on the loan charges facing Scottish local authorities in the present financial year.
§ Lord James Douglas-HamiltonLocal authorities have budgeted for loan and leasing charges of £605 million on services relevant for revenue support grant in 1989–90. The latest available estimates—which do not take account of the most recent increase in interest rates—indicate that this figure may be £20 million higher as a result of interest rate changes. The majority of the loans taken out by local authorities are at fixed rates of interest. Therefore, loan charges depend to a large extent on the interest rate current when a loan was taken out, and fluctuations in interest rates have a lesser effect than would otherwise be the case.
Loan charges, budgeted to be met from housing revenue accounts, amount to £495 million for 1989–90 and the effect of increased interest rates is under consideration. If necessary, a housing support grant variation order will be made in due course.