§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the annual reduction in the Government's debt servicing bill in the years(a) 1996–97, (b) 1997–98, (c) 1998–99, (d) 1999–2000 and (e) 2000–01 resulting from a fall in United Kingdom interest rates of 1.5 per cent. across all maturities of the yield curve. [30594]
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§ Mrs. Angela KnightThe forecast reductions in net central Government interest payments resulting from a half of 1 per cent. fall in interest rates across the yield curve are as follows:(a) 1996–97 £0.3 billion, (b) 1997–98 £0.5 billion, (c) 1998–99 £0.6 billion, (d) 1999–2000 £0.7 billion, (e) 2000–2001 to £0.7 billion.
These reductions are calculated using the 1995 Budget forecast for borrowing and assume that the half point fall is sustained throughout the forecast.