HC Deb 01 November 1956 vol 558 cc177-8W
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 in 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.