§ Mr. Alan Williams
asked the Chancellor of the Exchequer what interest has been paid to the latest available date on money borrowed to offset uncollected tax revenue resulting from the 1981 Civil Service dispute; and what is his estimate of the current or latest monthly interest cost.
§ Sir Geoffrey Howe
It is estimated that interest on extra borrowing resulting from the Civil Service dispute amounted to about £½ billion up to the end of March 1982. Reasonable estimates of further interest costs can no longer be made over periods as short as a single month because it is not possible easily to distinguish revenue "recovery", on which the interest cost depends, from other fluctuations in receipts. However, during the three months ended June 1982 additional interest on this account may have amounted to around £50 million.