Osborne begins paying back 1917 War Loan

The government is to pay off part of the UK's First World War debt, as part of a redemption of bonds stretching as far back as the 18th century.

The Treasury plans to redeem £218m of debt from the 4% Consolidated Loan on 1 February 2015. ‘4% Consols' were first issued by then Chancellor Winston Churchill in 1927, partly to refinance National War Bonds originating from the First World War. The Debt Management Office estimates the UK has paid £1.26bn in total interest on these bonds since 1927. National War Bonds were first issued in 1917 as the government tried to raise money to finance the ongoing cost of WW1, which started with the issue of the first War Loan in November 1914. The Treasury said this will be the first repay...