§ Viscount CASTLEREAGHasked the Chancellor of the Exchequer what amount has been paid up to 5th March, 1910, in 1155 respect of interest on money borrowed to make good the deficit in the revenue caused by the failure of the Finance Bill, 1909, to become law; what is the estimated amount that will be paid in interest up to 16th April, 1910; what interest will be saved and by what amount will the borrowings be reduced as a result of the proposed suspension of the Sinking Fund?
§ Mr. LLOYD-GEORGEThe amount paid for interest on Ways and Means borrowing (including discount on Treasury Bills), from 1st October last to the 5th instant, inclusive, has been £151,674, as compared with £29,015 in the corresponding period of last year. The difference between these figures is due in the main to the delay in the passing of the Finance Bill. The amount payable from the 6th instant to the 16th proximo inclusive will depend on the prices obtained for the Treasury Bills to be issued between those dates and the currency adopted for the Bills, since the whole of the interest in respect of borrowing upon Treasury Bills is paid in advance in the form of discount. The suspension of the new Sinking Fund to the extent of £6,300,000, as proposed in the Treasury (Temporary Borrowing) Bill will have the effect of reducing the amount which would otherwise have had to be borrowed on or about the 31st instant by £2,800,000, as compared with the position which would have been created if the Finance Bill had become law in ordinary course. This will save the interest on Treasury Bills to a similar amount which would otherwise have had to be issued.
§ Viscount CASTLEREAGHWill the right hon. Gentleman say exactly the amount due to the delay caused by the Government not taking the necessary steps to collect the Income Tax?
§ Mr. LLOYD-GEORGEThat is exactly the point put by the Noble Lord in his question, and which I have answered most fully.