Britain's First World War debt to be repaid in full

Britain's First World War debt is to be repaid in full, George Osborne has announced.

The Government will redeem the £1.9 billion of debt from the outstanding 3.5% War Loan - which was issued in 1932 to reduce the costs of servicing the national debt - in March 2015.

Chancellor George Osborne said it was a "moment for Britain to be proud of", adding: "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."