Oral Answers to Questions — National Finance. – in the House of Commons at on 9 September 1941.
Mr Alfred Edwards
, Middlesbrough East
asked the Chancellor of the exchequer whether his attention has been drawn to the latest statement of Lord Kindersley discouraging the public against lending money to the Government by proxy, that is, through the banks; and which form of borrowing is cheaper for the Government and the cost in each case?
Sir Kingsley Wood
, Woolwich West
The answer to the first part of the Question is in the affirmative. The cost of Government borrowing, whether from the banks or from the public, depends, of course, on the period of the borrowing. While short-term loans, for which the Government relies mainly on the banks, are the cheapest, it is in the best interests of the State that it should as far as possible borrow by methods which relieve it of the liability to repay money at short notice. The public should, there fore, be encouraged to invest their avail able resources in the longer-term war issues. Such action is also helpful in restricting unnecessary spending.
Mr Alfred Edwards
, Middlesbrough East
Will the Chancellor answer the last part of the Question?
Sir Kingsley Wood
, Woolwich West
I do not think I could do that, but I will look into the matter again and see.
Mr Richard Stokes
, Ipswich
Is the Chancellor aware that Lord Kindersley has said that the most patriotic thing for anyone to do is to put their money on deposit at the bank?
Sir Kingsley Wood
, Woolwich West
I think that that statement would have to be qualified.
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.
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.
