§ Mr. Ogden
asked the Minister of Housing and Local Government if he is aware that some local authorities are to increase their loan charges for house purchasers from 7 per cent to 7⅜ per cent. on 1st April, 1967; what is his policy on such increases during the period of severe restraint; and if he will refer this matter to the National Board for Prices and Incomes.
§ Mr. Mellish
Local authorities are required, when fixing the rate of interest on home loans, to have regard to the rate346W at which they are currently borrowing so as to ensure that their schemes are not operated at a loss. My right hon. Friend relies upon them to exercise the maximum restraint consonant with this requirement and he does not think that further advice from him is called for at this stage or that this is a matter for reference to the National Board for Prices and Incomes.