HC Deb 06 December 1960 vol 631 cc1036-7
2. Mr. H. Wilson

asked the Chancellor of the Exchequer if he will state the total cost to the Exchequer of the interest charged on the National Debt for the financial years 1950–51, 1954–55, 1959–60, and for the present financial year to date.

Mr. Selwyn Lloyd

As the Answer contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

Mr. Wilson

Yes, Sir, we are not surprised. But would the right hon. and learned Gentleman confirm or not the figures in last week's Exchequer returns showing that in this financial year to date the total amount of interest charged on the National Debt has exceeded that in the period last year up to the same date by some £40 million, and is this not a very prodigal increase in the charge levied on the taxpayer?

Mr. Lloyd

Of course, it is costly to have high interest rates, but the point is that failure to have them might be very much more costly.

Mr. Wilson

But is it not a fact that in the last Budget we were told that the great disinflationary fact was the increase in the Tobacco Duty, Which was going to yield £40 million in a full year, and has not the whole of that amount already gone in interest on the National Debt?

Mr. Lloyd

That is an over-simplification. The point is that if one does not take this kind of difficult action at times one may cause much greater cost to the economy as a whole.

Following are the figures:

Year Total cost of interest and management of National Debt Interest met from receipts of interest on Exchequer loans to local authorities, nationalised industries and other borrowers Interest and management met from revenue
£000 £000 £000
1950–51 514,886 37,059 477,827
1954–55 673,664 103,942 569,722
1959–60 858,296 243,560 614,736
1960–61 (to 3rd December, 1960) 609,985 180,547 429,438

Sources: Finance Accounts, 1950–51, 1954–55 and 1959–60; Exchequer Weekly Returns for week ending 3rd December, 1960.