67 years on, the UK pays off another chunk of WWI debt

The Government has announced it will pay off part of the UK’s First World War debt - the first such payment for 67 years. The Treasury said it will repay $350m of the $3.2bn still owing from the 1914 to 1918 war, as part of a redemption of bonds stretching as far back as the 18th century. The payment, to be made on 1 February next year, will be the first repayment of National War Bonds by a Chancellor since 1947.

I am delighted to be able to announce today that we will repay part of the country’s First World War Debts. We are only able to take this action today thanks to the difficult decisions that this government has taken to get a grip on the public finances.

Chancellor of the Exchequer, George Osborne

The 4% consolidated loans were first issued by Chancellor Winston Churchill in 1927, partly to refinance National War Bonds originating from the First World War. Britain has paid $2.1bn in total interest on the bonds since then, according to the Debt Management Office.

The fact that we will no longer have to pay the high rate of interest on these gilts means that most important of all, today’s decision represents great value for money for the taxpayer.

George Osborne

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