23Permanent annual charge for National Debt
(1)The provisions contained in section thirty-two of the Finance Act, 1923, which relate to the New Sinking Fund (1923) and the annual charges for the National Debt, shall cease to have effect and in lieu thereof the following provisions of this section shall have effect.
(2)There shall be issued out of the Consolidated Fund of the United Kingdom or the growing produce thereof at such times and in such manner as the Treasury may from time to time direct, so, however, that the whole amount to be issued in respect of any financial year shall be issued in that year, the sums following, that is to say:—
In the financial year ending on the thirty-first day of March, nineteen hundred and twenty-nine, the sum of three hundred and sixty-nine million pounds:
In the financial year ending on the thirty-first day of March, nineteen hundred and thirty, and in every subsequent year, the sum of three hundred and fifty-five million pounds.
(3)The sum to be issued as aforesaid in each financial year (in this section referred to as " the permanent annual charge for the National Debt") shall be applied in the first place in meeting the annual charges in respect of that year for the National Debt in respect of interest and management (including expenses incurred in connection with the raising of money or the issue or exchange of securities).
For the purposes of this subsection the expression " interest" includes such part as represents interest of the terminable annuities which would, if the Finance Act, 1923, had not passed, have been payable out of the permanent annual charge under the [38 & 39 Vict. c. 45.] Sinking Fund Act, 1875, but does not include any interest payable in respect of savings certificates or the interest on any loans raised under any Act passed after the commencement of this Act which does not direct that interest to be paid out of the permanent annual charge for the National Debt.
(4)The balance in each financial year of the permanent annual charge for the National Debt after meeting the annual charges mentioned in the last preceding subsection shall be issued for the following purposes and in the following order :—
(a)In paying such part of the said terminable annuities as represents capital:
(b)For providing such sums as are required—
(i)for the purposes of the sinking funds established in pursuance of section two of the [9 & 10 Geo. 5. c. 37.] War Loan Act, 1919, in connection with the four per cent. Victory Bonds and four per cent. Funding Loan, 1980-1990;
(ii)for the purposes of the sinking fund established under section forty-five of the [11 & 12 Geo. 5. c. 32.] Finance Act, 1921, in connection with the three and one-half per cent. Conversion Loan;
(iii)for the purpose of any undertaking contained in any prospectus to purchase and cancel four per cent. Consolidated Loan;
(iv)for meeting such part of the annual payments due to the Government of the United States of America in respect of the American Loan as represents capital;
(v)for making any payments required to be made to the National Debt Commissioners in pursuance of section three of the War Loan Act, 1919, in respect of Victory Bonds or Funding Loan, 1960-1990, accepted by the Commissioners of Inland Revenue in payment of death duties:
(c)In meeting the interest payable in respect of savings certificates :
(d)In providing the sums required for the purposes of the Depreciation Fund established under section thirty-two of the [7 & 8 Geo. 5. c. 31.] Finance Act, 1917 :
(e)In the purchasing, redeeming or paying off of any other description of debt charged on the Consolidated Fund, other than advances made by the Bank of England or the Bank of Ireland under section twelve of the [29 & 30 Vict. c. 39.] Exchequer and Audit Departments Act, 1866, or loans raised under any Act to meet ways and means.
(5)The balance aforesaid (except such part thereof as may be applied in meeting the interest payable in respect of saving certificates) is in this section referred to as "the New Sinking Fund (1928)" and shah be applied for the purposes specified in subsection (4) of this section within nine months after the date of the issue thereof.
(6)The New Sinking Fund (1928) except such part thereof as, in the opinion of the Treasury, is from time to time required for meeting charges in connection with the redemption of loans repayable outside the United Kingdom, shall be issued to the National Debt Commissioners for the purpose of being applied by them in manner provided by the foregoing provisions of this section, and the provisions of section seven of the Sinking Fund Act, 1875 (which relates to accounts of the new and old sinking funds) shall apply in relation to the new sinking fund established by this section as they apply in relation to the new sinking fund established by that Act, and all securities purchased or redeemed in pursuance of this section, except four pounds per cent. Victory Bonds and four pounds per cent. Funding Loan, 1960-90, purchased by the National Debt Commissioners, and held by them on the account opened under the regulations made in pursuance of subsection (2) of section three of the War Loan Act, 1919, shall be cancelled forthwith in such manner as the Treasury may from time to time direct.