HC Deb 27 April 1931 vol 251 c1395

7. The detailed application of the Sinking Fund (£66,830,000) is shown in the table on page 4 of the Financial Statement. The surplus of Ordinary Revenue over Ordinary Expenditure, which is the true figure of the cash applied to debt reduction out of revenue, was, as already stated, £43,554,000, and, in addition, £9,057,000 cash was applied to the reduction of Debt outside the Budget from the proceeds of the German Government Mobilisation Loan.

The total nominal deadweight debt on the 31st March, 1931, was £7,413,278,000, a reduction in the year on the face value of the debt of £55,761,000.

The principal debt operations of the year were:

  1. (i) The redemption of £24,568,000 of 5¼per Cent. Treasury Bonds from the proceeds of issue of 4¼ Conversion Loan under the prospectus of February, 1930; and
  2. (ii) The redemption of £75,100,000 of the 4 per Cent. War Loan, tax compounded, and of £11,037,000 4¼ per Cent. Treasury Bonds from the proceeds of issue of 4 per Cent. Treasury Bonds by tender, at an average price of £100 11s. 6d.

The annual saving effected by these operations was approximately £900,000, including the gain to Income Tax revenue, estimated at £650,000, arising from the substitution of a taxable security for the tax compounded 4 per Cent. War Loan.

The market prices of representative Government stocks improved during the year as follows:

31st March,1930. 31st March,1931.
3¼per Cent. Conversion Loan 78½ 79⅛
4 per Cent. Consols 88⅝ 90⅛
5 per Cent. War Loan 103 104¼
4 per Cent. Funding Loan 91¼ 91¾
3 per Cent. Local Loans 65¾ 66⅛