Unfortunately, M R Atwell’s idea regarding interest on government debt payment (Oxford Mail, May 11) won’t work.

Firstly, to clarify, the government has provided support of about £850bn to the banks.

The majority of this support is by way of guarantees and indemnities, so nothing is actually paid out unless things go pear shaped.

Of this total, £76bn is invested in shares in RBS and Lloyds. The Government, and therefore the taxpayer, should hope to get a return, or profit on these investments.

On the other hand, the Government has to borrow £160bn or more this year in order to keep essential services going.

This money is not borrowed from the Bank of England, but outside investors, such as foreign governments and institutions, investment trusts as well as pension funds in the UK which provide private sector workers with their retirement pensions.

The Government is in competition with other borrowers (other countries and companies) for these monies, and if it didn’t pay interest, people wouldn’t lend the money.

For example, if the pension fund lent the funds to the Government without getting interest, the result would be less pension for workers in private sector company pensions.

Would you put your savings with an institution that paid no interest?

This is, effectively, what this idea means.

Paul Wilson, Kennedy Close, Oxford