Creative accountancy

We, as a nation, still owe £2 Billion which we borrowed to finance WW1. It was borrowed on what is called Perpetual Loans and the interest, at 3.5%, has to be paid until the debt is paid. George Osborne, in his autumn statement said that we were going to paid these loans off. To do this he is borrowing the a same amount, but at 2.5% interest. This is saving the government about £20 million. Clever George!!