§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer, pursuant to his answer of 2 April,Official Report, columns 480–81 on ways and means advances, if he will give the actual advances from the Bank of England outstanding at the last working day of the last six financial years and the interest rate payable at that time on such advances.
§ Mr. NelsonThe information is as follows:
Financial year Level of Ways and Means1 advances outstanding from the Bank of England Interest1 £ million percentage 1987–88 4,638 8.375 1988–89 6,256 12.875 1989–90 5,963 14.875 1990–91 6,918 12.875 1991–92 7,187 10.375 21992–93 3,062 5.875 1 Level of Ways and Means, rounded to the nearest million, and interest payable as at the last working day of each financial year. 2 (Provisional).
§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer, pursuant to his answer of 2 April,Official Report, column 481, on ways and means advances, why interest is paid on such advances; and what proposals he has to arrange for the Bank of England not to charge such interest.
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§ Mr. NelsonInterest is payable to the Bank of England on ways and means advances, and payable by the Bank of England on deposits when the national loans fund is in surplus. It is appropriate for national loans fund borrowing from, and lending to, the Bank of England to be at interest.
There are no proposals to change the arrangements for charging interest.