Time to cut interest bill

Published: 29 October, 2010

• YESTERDAY, Northern Rock informed me I will be receiving the reduced sum of 0.08 per cent (net) on my £25 savings. 

In this age of austerity and fairness, isn’t it time that those high up in Islington Council and their advisors renegotiated the 14.5 per cent interest  (plus indexation at the retail price index) on the money borrowed by way of a private finance initiative (PFI) from Halifax Bank of Scotland (now owned by Lloyds TSB Bank) to refurbish several thousand council-owned Victorian and Georgian properties, for terms of 30 years and 16 years in two PFI contracts?

Currently (according to its website) the council pays out between £4million and £7million every month to Partners for Improvement in Islington (PFII) PFII is 45 per cent owned by United House Solutions (the builder), 10 per cent by Hyde Housing (the office staff) and 45 per cent by Halifax Bank of Scotland.  

A reduction in interest rates would be of great benefit to the national tax payer, the council rent payer and our children, grandchildren and great-grandchildren.

ORIEL HUTCHINSON 
Organising secretary, Islington Conservative Federation