Government bids tp force open 'untouchable' £400 million charity fund to help pay off national debt

The Government will attempt to force open a £400 million charity fund to pay off the national debt, according to a new report.

It plans to go into court to open the National Fund – which was set up with an anonymous £500,000 donation in 1928.

So far, the 90-year-old account has remained untouchable.

The mystery benefactor behind it specified that the fund should be held in trust until the country raises enough money to pay off the entire national debt.

Despite the Fund growing to £400 million, it is now dwarfed by the debt, which in December was estimated at £1.7 trillion.

It has never been worth more than 0.066% of the national debt.

Attorney General Jeremy Wright is due to file documents at the High Court on Tuesday, urging judges to alter the terms of the trust fund and release the money for its intended use.

Mr Wright said: "Almost 90 years ago, an anonymous donor bequeathed money to the nation and yet we have not been able to put it to good use.

"We have been working with the Treasury, trustees and the Charity Commission to find a solution consistent with the donor's original objectives of extinguishing the national debt.

"I am applying to the High Court to ask that the fund is released - and if that application is successful, the fund could be used to benefit the nation by helping to do what the original donors intended."

Barclays, which manages the charitable fund, has been trying for years to get permission to use the money to make charitable grants or to turn it over to the Treasury, but any change has to be approved by a court.

A Charity Commission spokeswoman said: "We have worked closely with the Attorney General's Office to ensure a resolution to the matter of the National Fund, and we welcome the AG's steps.

"It is important that these considerable funds are applied, and applied in line with the charitable intentions of the original donor."