HC Deb 18 June 1935 vol 303 cc178-9
35. Mr. CRAVEN-ELLIS

asked the Chancellor of the Exchequer whether an increase or a decrease in the National Debt has taken place during the time the National Government has been in office; and what are the comparative figures for the years 1931 to 1935?

Mr. CHAMBERLAIN

The nominal capital of the debt has slightly increased; on the other hand the annual charge has been very greatly reduced. I will circulate the figures in the OFFICIAL REPORT.

Mr. CRAVEN-ELLIS

May I ask the right hon. Gentleman what are the principal items to account for the increase in the National Debt?

Mr. CHAMBERLAIN

It is partly due to the borrowing of £350,000,000 on Treasury Bills for the Exchange Equalisation Account, and of course there are assets of more than that value to correspond. There are also the expenses of converting the 5 per cent. War Loan, the loss on the foreign credits raised in 1931, and the issue of loans at a small discount in connection with conversion to a lower rate of interest; with a partial offset to these items by the application of Sinking Fund and other receipts to debt redemption.

— 1931. 1932. 1933. 1934. 1935.
£000 £000 £000 £000 £000
Nominal capital of Debt on 31st March 7,413,309 7,433,943 7,643,794 7,822,298 7,800,565
Less, outstanding issues to Exchange Equalisation Account. — — 150,000 350,000 350,000
7,413,309 7,433,943 7,493,794 7,472,298 7,450,565
Interest and Management Charge in year ending 31st March:
Internal Debt 264,262 279,983 262,786 212,010 211,434
External Debt 28,907 17,940 22,039 4,240 223
The increase in the nominal total due to the borrowing of £350,000,000 on Treasury Bills for the Exchange Equalisation Account is more than offset by corresponding assets. Other causes of increase in the nominal total have been the expenses of converting 5 per cent. War Loan, loss on the foreign credits raised in 1931, and the issue of loans at a small discount in connection with conversion to a lower rate of interest, these items being partially offset by the application of Sinking Fund and other receipts to debt redemption.