HC Deb 01 December 1966 vol 737 c139W
Mr. Sheldon

asked the Chancellor of the Exchequer (1) what is the estimated annual cost since 1960 of interest and other charges on United Kingdom external liabilities in sterling;

(2) what is the estimated annual income since 1960 from interest on United Kingdom claims in sterling.

Mr. Callaghan

Interest paid on U.K. external liabilities in sterling is estimated to have been, in round figures:

£ million
1960 1961 1962
150 175 150
1963 1964 1965
125 175 200

Interest received on banking advances, which represent roughly one-third of U.K. external sterling claims, is estimated to have been, in round figures:

£million
1960 1961 1962
15 20 15
1963 1964 1965
20 25 30

The larger part of U.K. external claims in sterling is represented by commercial bills and acceptances. If allowance is made for interest on these included in "interest profits and dividends" and for interest included but not distinguished in the value of exports, the true net interest cost on U.K. net liabilities in sterling is probably now in the region of £100–£150 million per annum.