Introduction Background Note
5.This section will provide for the government to redeem 2¾% Annuities, 2½% Annuities and 2½% Consolidated Stock with at least three months’ notice in the London Gazette. The terms and conditions of the stocks do not enable their redemption. However, provision for their redemption by Parliament was made in legislation dating from the nineteenth century. For two of the stocks, conditions in that legislation can no longer be met and consequently new provision is being made for the redemption of all three stocks in the Finance Act 2015. The government announced at Budget 2015 that it will redeem these three bonds once this Finance Act legislation has been enacted.
6.At Autumn Statement 2014, the government announced that it was adopting a strategy to remove the remaining undated government bonds from the debt portfolio, where it is deemed to provide value for money. Since 31 October 2014, the government has announced the redemption of five undated bonds: 4% Consolidated Loan, 3½% War Loan, 3½% Conversion Loan, 3% Treasury Stock and 2½% Treasury Stock.