§ Mr. Tim SmithTo ask the Chancellor of the Exchequer how much of the national debt was repaid in 1987–88; what was the total amount outstanding at 31 March; how much he estimates will be repaid this year; and how long it would take for the whole sum to be repaid if annual repayments of £10 billion were made with effect from 1988–89.
§ Mr. Lilley[holding answer, 1 November 1988]: Public sector debt repayment in 1987–88 was £3.6 billion. The net debt of the public sector outstanding at 31 March 1988 was £171.3 billion. My right hon. Friend the Chancellor estimates that some £10 billion of public sector debt will be repaid in 1988–89.
Leaving aside any capital gains or losses which might occur to the values of marketable public debt, and which are inevitably uncertain, then annual repayments of £10 billion would eliminate net public debt in approximately 17 years.