Oral Answers to Questions — British Army. – in the House of Commons at on 12 December 1939.
Mr Frederick Pethick-Lawrence
, Edinburgh East
asked the Chancellor of the exchequer whether, in view of the reduction of the Bank of England rate to 2 per cent. and of the Joint Stock Banks rate of interest on deposit to half per cent., he will take steps to see that the rates for call money are also reduced correspondingly to the pre-war figure?
Mr John Simon
, Spen Valley
The question of the rate to be charged for call money by the London Clearing Banks to the Money Market is one which falls to be decided by those banks themselves in the light of current monetary and commercial conditions.
Mr Frederick Pethick-Lawrence
, Edinburgh East
Is the Chancellor prepared to connive in the rate being kept at a figure which greatly increases the amount of money paid out of the public exchequer in respect of Treasury Bills?
Mr John Simon
, Spen Valley
I do not think that that is the whole situation. There are a number of factors which enter into this question.
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
A proposal for new legislation that is debated by Parliament.
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
