§ Mr. Woodburnasked the Chancellor of the Exchequer what extra services are rendered by the Bank of England for which increased interest is being paid to them as a result of increases in interest rates; and whether he is prepared, in the interests of national economy, to ensure that necessary changes in Government financial policy involve no increased payments to the Bank of England and other banks not justified by essential service?
§ Sir J. SimonThe rates of interest payable on Ways and Means Advances from the Banking Department of the Bank of England are settled by agreement between the Treasury and the Bank and must take account of prevailing market rates. The present rates, which I referred to in my reply to the hon. Member on 16th January, are, in fact, the lowest on record.