§ 76. Mr. Sir F. WISEasked the Chancellor of the Exchequer the amount by which the National Debt has been reduced by surpluses and sinking fund since 1920–21, and the savings in interest during the same period?
§ Mr. McNEILLBetween 1st January, 1920, and 31st March, 1925, the cash applied to the reduction of the National Debt was £736,000,000. Excluding the debt due to the United' States of America, Government, the reduction in the interest charge amounts to £52,000,000 per annum, from £326,000,000 in 192–21 to £274,000,000 in the Budget of 1925–26.
The annual interest due on the United States of America. Government debt in 1920–21 was £57,000,000 as against £28,750,000 provided in the Budget of 1925. The reduction in this latter case was not due wholly to capital repayments but in part to the reduction in the rate of interest effected by the Funding Agreement and in part to improved exchange.
The total reduction in interest charges a thus amounts to approximately £80,000,000 a year