By Daniel Hunter

The government will pay off its remaining World War One debt, the Chancellor George Osborne confirmed during the Autumn Statement.

The Treasury said the Chancellor would announce plans to pay the remaining £1.9bn debt from the 3.5% War Loan on 9 March 2015.

In October, an announcement was made outlining plans to pay off £218m of the debt. But the government is now expected to pay off all of the remaining debt.

More than 120,000 investors hold War Loan bonds. They were set up in 1932 to refinance government debt accumulated during World War One.

It is the first time the government has paid off a loan of this kind for 67 years. The Debt Management Office estimates that the UK government had paid £5.5bn in interest on the bonds since 1917.

Certain estimates say that the government will be able to save £30m a year in interest payments by refinancing the £1.9bn with new bonds.

George Osborne said: "This is a moment for Britain to be proud of. 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."

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