§ 68. Mr. McKayasked the Chancellor of the Exchequer what has been the increased cost to the Exchequer in annual interest charges on all its financial transactions since 1954, giving the figures for 1955 and 1956 separately; and how much this extra cost for 1955 and 1956 would have increased the standard rate of Income Tax for each of these two years if the total increased interest and other related charges had been met by this means alone in those two years.
§ Mr. P. ThorneycroftThe increased cost to the Budget Revenue of interest and management of the National Debt in 1955–56, as compared with 1954–55, was £68 million; figures for the current financial year will not be available before 30th March. The increase of £68 million is equivalent to about 3d. in the standard rate of Income Tax, with corresponding adjustments in the reduced rates.