Lord Chelwoodasked Her Majesty's Government:
Whether they are now in a position to make an announcement about the implementation of the Law Commission's Report on Interest (Cmnd. 7229).
The Lord ChancellorThe Government have given careful consideration to the valuable work of the Law Commission on this subject. After further consultations, to which I referred in my answer to the noble Lord, Lord Kilmarnock, on 29th July (Vol. 412, col. 722), it has been decided not to proceed with legislation to implement the main recommendation in the report that there should be a general statutory entitlement to interest. However, the Government do intend to introduce legislation in due course to implement the Law Commission's recommendation that the scope of the Law Reform (Miscellaneous Provisions) Act 1934 should be enlarged. This would enable interest to be awarded, at the discretion of the court, where judgment has been obtained by default or where payment has been made without judgment. The possibility of adapting the Judgments Act 1838 to the county courts, so as to require the payment of interest on some county court judgment debts, is also under consideration.