§ 65. Sir D. Gloverasked the Chancellor of the Exchequer, what he estimates is the additional debit on the balance of payments, the additional annual cost of servicing the National Debt, and the additional annual cost to industry arising from the maintenance of Bank Rate at eight per cent. rather than seven per cent.
§ Mr. Harold LeverNo precise answer can be given to any of these questions. A 1 per cent. increase in Bank Rate was estimated by the Radcliffe Committee in 1958 to cost about £15 million in a full296W year to the balance of payments. This is still probably about the right order of magnitude. The additional interest on the National Debt and the extra cost to industry of servicing bank advances can both be estimated in broad terms at £ 30 million a year.