HC Deb 27 March 1996 vol 274 c613W
Mr. Matthew Banks

To ask the Chancellor of the Exchequer what plans he has to publish a remit for sales of debt by the Department for National Savings. [23506]

Mrs. Angela Knight

The remit for the Department for National Savings for 1996–97 is as followsObjectives

  • The Department for National Savings' declared aim is to support the Government's management of their debt and their policies for personal savings by attracting and retaining investments from the retail market efficiently and cost-effectively.
  • The Department's primary task is therefore to be an efficiency and cost-effective source of funding for Her Majesty's Government. It is also charged with maintaining a suitable range of schemes to encourage savings among the population.
Volume of Funding in 1996–97
  • The net contribution of national savings to funding in 1996–97 is assumed to be around £3.0 billion.
 Responsibilities
  • The Treasury is responsible, under the National Loans Act 1968, for setting the terms of national savings products. DNS will normally take the lead in bringing forward proposals to Treasury Ministers on product terms, including rates.
 Cost Comparisons
  • The Government intend that National Savings' contribution to funding should offer value for money overall compared with other sources of funding. Product terms will take account of the need for DNS to retain the capability and market presence to contribute to the Government's funding needs over the medium term.