asked the Chancellor of the Exchequer when the official rate of interest for 1978–79 will be prescribed for the purpose of Section 66 of the Finance Act 1976; and if he will make a statement.

An order prescribing the rate will be introduced in the House in about October this year. The rate will be determined in relation to the rate of interest which a creditworthy personal borrower might have to pay on a bank overdraft. The rate in the order will take effect from the start of the fiscal year 1978–79 and will remain in force until further notice. The intention will be that that rate should remain in force at least until the end of 1978–79, but, if market rates should change substantially between the introduction of the order and the middle of 1978–79, a further order may be introduced to change the official rate either immediately or from the start of the fiscal year 1979–80.