Britain FINALLY pays off last of First World War debt as George Osborne redeems £1.9bn

IT has been nearly a century since the end of 'the war to end all wars', but Britain today finally paid off the last of its First World War debt.

Picture of First World War PA

The government has paid off all debt from the First World War

Chancellor of the Exchequer George Osborne today confirmed he had redeemed £1.9billion from an outstanding bond.

The bond, known as the 3.5 per cent War Loan, was issued in 1932 by then-Chancellor Neville Chamberlain as part of a campaign to reduce the costs of servicing the national debt.

It was issued as an exchange for the previous five per cent War Loan 1929-47, which had originally come out in 1917 as part of a campaign to raise money for the First World War.

The Debt Management Office estimates that Britain has paid some £5.5 billion in total interest on the five per cent and 3.5 per cent war loans since 1917.

This is a moment for Britain to be proud of.

George Osborne

Mr Osborne said he would repay the money in December last year.

Speaking at the time, he said: "This is a moment for Britain to be proud of. We can, at last, pay off the debts Britain incurred to fight the First World War.

"It is a sign of our fiscal credibility and it’s a good deal for this generation of taxpayers.

"It’s also another fitting way to remember that extraordinary sacrifice of the past."

Everyone registered as a bond holder will be contacted by financial firm Computershare Investor Services PLC about getting their money back.

The Government is also in the process of repaying a range of other bond and gilt loans - some dating back to the 18th century.

Filmed and Forgotten soldiers

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