§ 30. Mr. Lewis
asked the Chancellor of the Exchequer what the National Debt payments cost in 1950, and at the latest convenient stated date ; what have been the reasons for this increase ; and by how much in the £ could the present Income Tax rate be reduced if the present National Debt payment were reduced to its 1950 level.
§ Sir E. Boyle
National Debt Services (comprising interest, management and expenses and sinking funds) in the financial years 1950–51 and 1955–56 cost £497 million and £674 million respectively. The major factors contributing to the increase of £177 million were the rise in178W short-term interest rates and the instalments of interest, which commenced on 31st December, 1951, on the Canadian and American Government loans.
The sum of £177 million is equivalent to approximately 9d. in the Income Tax.