Skip to main content

Loans To Local Authorities

Volume 409: debated on Tuesday 10 April 1945

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what rate of interest is charged by the Government in respect of loans from the Exchequer to local government authorities.

Loans are not normally made from the Exchequer to local authorities, but in September, 1940, loans were made to two coastal local authorities to enable them to repay maturing debt. One of these loans has been repaid. Interest on the other is at 3½ per cent. Advances by way of loan have also been made to certain local authorities to meet deficiencies of rate income due to war damage or evacuation, and in connection with the arrangements for the rehabilitation of small traders in certain coastal areas. No interest is charged on these advances. In case, however, my hon. Friend intends to refer also to loans to local authorities from the Local Loans Fund, I am sending him a copy of the Treasury Minute fixing the rates of interest at present charged. These rates will shortly be replaced by the scale of rates for loans to local authorities announced during the recent debates on the Local Authorities Loans Bill.