Public Works Loans (Interest)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 20th January 1948.

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Photo of Mr Philip Piratin Mr Philip Piratin , Stepney Mile End 12:00 am, 20th January 1948

asked the Chancellor of the Exchequer whether he will make a statement giving the reason for increasing the rate of interest to be paid by local authorities to the Public Works Loan Board from 2½ to 3 per cent.

Photo of Sir Stafford Cripps Sir Stafford Cripps , Bristol East

The present rates charged are 2 per cent. for loans of less than five years, 2½ per cent. for loans of five to 15 years and 3 per cent. for loans for 15 years and longer. The rates of interest charged to local authorities are fixed from time to time to correspond broadly with Government borrowing rates for comparable periods.

Photo of Mr Philip Piratin Mr Philip Piratin , Stepney Mile End

Will the Chancellor of the Exchequer explain what new circumstances have arisen during the last few months, since the ex-Chancellor of the Exchequer introduced the very welcome reduction in interest charges, to make it necessary to inflict this further burden on local authorities?

Photo of Sir Stafford Cripps Sir Stafford Cripps , Bristol East

The Government borrowing rates for comparable periods have altered.

Photo of Mr Philip Piratin Mr Philip Piratin , Stepney Mile End

This is a very important dispute, and I am sure that the Chancellor of the Exchequer and the Minister of Health will both be receiving many resolutions from local authorities, similar to that which was passed by my local authority last night. Can the Chancellor find an opportunity of making a full statement on this matter to the House?

Photo of Sir Stafford Cripps Sir Stafford Cripps , Bristol East

I do not think it requires any further explanation. It is a perfectly simple position.