§ 61. Mr. Buchanan-Smith
asked the Chancellor of the Exchequer what consideration he has given to the effect of the rise in the Bank Rate on the cost of school-building; and whether he will reduce the interest charges on advances made in this respect.
§ Mr. Diamond
Debt charges on school buildings are one of the items of expenditure relevant to the calculation of the general grant to local authorities. Increase Orders about to be made by my right hon. Friends the Minister of Housing and Local Government and the Secretary of State for Scotland will take account of the likely effect, during the rest of the financial year, of higher interest rates.