§ Mr. Arthur Lewis
asked the Minister of Housing and Local Government whether he is aware that the London Borough of Newham is having to pay £2,800,000 in annual interest charges on borrowed money, mainly used for re-housing; what action he has taken or intends to take to reduce these rates to a level of 3½ per cent.; and when this will be implemented.
§ Mr. Mellish
The Housing Subsidies Act, 1967, has the general effect of reducing to 4 per cent. the rate of interest on money borrowed to finance new house building by local authorities. My right hon. Friend has no proposals for reducing the rate to 3½ per cent.