Commissioners for the Reduction of the National Debt - Debt Reduction
Little remains of the Commissioners’ original function, the full remnants of the earlier sinking fund concept having been removed by the National Loans Act 1968. However, a specific sinking fund is still operated under the terms of the prospectus to repay 3½% Conversion Loan.
If any part of the work of CRND can be said to be well known as far as the general public is concerned it would probably be that relating to the Donations and Bequests Account. Even today a few public-spirited people give or bequeath money - or, sometimes, more tangible assets such as property - to CRND to help reduce the National Debt. The proceeds of all such gifts are used to purchase and cancel gilts through the Donations and Bequests account.
In 1808 a scheme for converting permanent into terminable debt was introduced, empowering the Commissioners to sell life annuities. The arrangement lasted, with modifications, for more than 150 years, the constant feature being that the purchase money was used to cancel gilts while the Exchequer paid the annuity instalments. The 1962 Finance Act repealed the power to grant further annuities but CRND retains responsibility for paying the quarterly instalments of the existing annuities.