asked the Chancellor of the Exchequer what reply he has given to the resolution of the Council of the County Borough of Sunderland concerning the financial burden on ratepayers and council house tenants resulting from the increase in interest rates for local authority loans.

I have noted the council's resolution. I can only repeat that Government policy is that local authorities should pay the ruling rate of interest, whether they borrow on the market or from the P.W.L.B. The hon. Member and the council will no doubt have noticed that since the council wrote to me, some of the rates of interest charged by the P.W.L.B. have been slightly reduced in keeping with the fall in market rates.