Post-war Credits

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 8th May 1951.

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Photo of Sir Waldron Smithers Sir Waldron Smithers , Orpington 12:00 am, 8th May 1951

asked the Chancellor of the Exchequer why interest is not being paid on outstanding Post-war Credits.

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

There is no right to interest on outstanding Post-war Credits, and it was never intended that interest should be paid or accrue prior to repayment of the credit itself.

Photo of Sir Waldron Smithers Sir Waldron Smithers , Orpington

Is the Chancellor aware that the "Income Tax Quiz" published by His Majesty's Stationery Office says, on page 21: Does the Post-war Credit bear interest? Answer: It will bear interest as from some date after the end of the war. Can the Chancellor say when that date will be fixed, for the benefit of the people who put their money in to help during the war?

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

When the financial circumstances of the country permit.

Photo of Lieut-Commander Joseph Braithwaite Lieut-Commander Joseph Braithwaite , Bristol North West

Is the Chancellor aware that under the existing system the last Post-war Credit will not be repaid until 1988, by which time the Government will have had the interest-free use of this money for 47 years?

Photo of Sir Frank Medlicott Sir Frank Medlicott , Norfolk Central

asked the Chancellor of the Exchequer what is now the approximate total of outstanding Post-war Credits; and if he can give any estimate of the year in which payments of these credits on a substantial scale can be commenced.

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

About £611 million. As I said in the Budget debate on 16th April, we cannot afford to speed up the rate of repayment this year, and I cannot say now when it will be possible to do this.

Photo of Sir Frank Medlicott Sir Frank Medlicott , Norfolk Central

Can we appeal for a greater measure of consistency in the Treasury? Does the Chancellor of the Exchequer not recall that he recently justified the rather remarkable Financial Agreement with the Egyptian Government on the ground of the moral obligation involved? Surely the people who own these Post-war Credits are equally entitled to consideration.

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

I do not agree that the analogy is at all an appropriate one.

Photo of Mr Marcus Lipton Mr Marcus Lipton , Lambeth Brixton

How does the amount outstanding compare with the amount already paid out?

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

I should like to have notice of that question.

Photo of Sir Waldron Smithers Sir Waldron Smithers , Orpington

Will the Chancellor take into consideration the cases of old people or people who are ill or in want, and give them special consideration by the repayment of their Post-war Credits?

Photo of Mr Hugh Gaitskell Mr Hugh Gaitskell , Leeds South

It is already done in the case of people reaching the age of 65 in the case of men, and of 60 in the case of women.