§ Mr. David Priceasked the Chancellor of the Exchequer how the total public borrowing requirement was financed in the years 1974–75 and 1975–76, respectively; how much was financed from sources outside the United Kingdom; what is his estimate of how he will finance the 1976–77 public borrowing requirement; and how much will be financed from sources outside the United Kingdom.
§ Mr. Denzil DaviesThe attached table shows the public sector borrowing requirement for the financial years 1974–75 and 1975–76 and indicates how this total was financed. Borrowing from the banking sector in foreign currencies (column 5 of table) essentially represents overseas borrowing by the public sector channelled through the banking system. This figure has, therefore, to be added to direct external finance of the public sector (column 6) to give the total borrowing requirement financed from sources outside the United Kingdom; the totals for 1974–75 and 1975–76 respectively are £2,615 million and £1,081 million.
It is not the practice to provide forecasts of the pattern of financing the public sector borrowing requirement, but my right hon. Friend the Chancellor of the Exchequer has repeatedly emphasised his determination to maintain overall monetary control and, therefore, to restrain the extent to which the borrowing requirement is financed by borrowing in sterling from the banking system.