HC Deb 12 April 1945 vol 409 cc1998-9W
Sir F. Sanderson

asked the Chancellor of the Exchequer the percentage commission paid to the Bank of England for the administration of the Government debt of £14,000,000,000 issued to finance the war during the past five years; and whether any portion of it was carried out by the Bank of England free of remuneration apart from outlays.

Sir J. Anderson

The remuneration of the Bank of England in respect of securities managed by the Bank is based on varying rates agreed for the different types and amounts of the securities involved. Payments of remuneration in respect of any year are made in the following April on the basis of the debt outstanding at the beginning of the year in question. The total increase in the National Debt between 31st March, 1939, and 31st March, 1944, was £11,425,000,000, but the increase in respect of which management charges were payable to the Bank was £6,770,000,000 only. The resulting increase in the charges was £242,000 or just over ¾d. per £100 of the £6,770,000,000. The answer to the second part of the Question is in the negative.