HC Deb 02 May 1944 vol 399 cc1249-50

Resolution reported: That it is expedient to authorise

  1. (a) the issue out of the Consolidated Fund of the sum of four hundred and twenty million pounds for the permanent annual charge for the National Debt for the current financial year instead of the sum of three hundred and fifty-five million pounds;
  2. (b) the provision out of money borrowed for the purpose under the National Loans Act, 1939, instead of out of the permanent annual charge for the National Debt of the sums required for the current financial year for the purposes mentioned in paragraph (a) or paragraph (b) of Sub-section (4) of Section twenty-three of the Finance Act, 1928, as amended by any subsequent enactment."

Motion made, and Question proposed, "That this House doth agree with the Committee in the said Resolution."

Mr. Tinker (Leigh)

There is one point I would like to have cleared up. The White Paper dealing with the Resolution says: To authorise the issue out of the Consolidated Fund the sum of £420,000,000 for the permanent annual charge for the National Debt for the current financial year instead of the sum of £355,000,000. That is an increase of £65,000,000 and the House is entitled to know where this extra money is going and what is the cause. I would like to have some explanation. I have some idea in my own mind, but I am not quite satisfied.

The Financial Secretary to the Treasury (Mr. Assheton)

If the hon. Member for Leigh (Mr. Tinker) will look at the Financial Statement presented to the House at the same time as the Budget, he will observe that the estimated expenditure for interest and management of National Debt this year is £420,000,000—it is in Table No. 12. The great increase in the amount of interest is undoubtedly due to the fact that we have borrowed a great deal of money during the past year on which we have to pay interest, and also due to the fact, I am afraid, that we are going to have to go on borrowing a great deal of money during the current year on which we shall also have to pay interest. It is not due to the fact that the rate of interest is rising but to the fact that we have had to borrow so much more money.

Mr. Mathers (Linlithgow)

The right hon. gentleman is not suggesting that he wants to stop borrowing?

Mr. Assheton

No, indeed, I wish we could.

Question, "That this House doth agree with the Committee in the said Resolution," put, and agreed to.