HC Deb 12 February 1953 vol 511 c590
36. Mr. Bence

asked 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-Carpenter

The 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. Bence

In 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-Carpenter

While 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.