§ 36. Mr. Benceasked the Chancellor of the Exchequer if he will give an estimate of the annual cost of paying interest to holders of post-war credits at the rate of interest paid on Post Office savings.
§ Mr. Boyd-CarpenterThe gross cost to the Exchequer of paying interest at 2½ per cent. on the total amount of postwar credits outstanding would be about £14,500,000 in 1953–54 and would diminish thereafter by about £400,000 per annum while post-war credits continue to be repaid at the current rate.
§ Mr. BenceIn view of that figure of an annual cost of £14,500,000, which is a relatively small figure. and in face of the fact that in last year's Budget the Chancellor increased interest payments to the big moneylending firms to the tune of £100 million, in the next Budget would he not spend £14,500,000 for the benefit of people whose money he has kept for 10 years?
§ Mr. Boyd-CarpenterWhile I shall not be tempted into anticipation of any Budget statement, I must point out that the sum of £14,500,000 as an additional Exchequer charge is not wholly negligible.