HC Deb 31 January 1997 vol 289 cc420-1W
Mr. Michael Brown

To ask the Chancellor of the Exchequer what is his policy with regard to the level of funding of the public sector borrowing requirement. [12014]

Mr. Waldegrave

The Government's annual financing objective is to sell sufficient gilts of any maturity, Treasury bills and National Savings products to finance the central Government borrowing requirement, plus maturing gilts and any net increase in the foreign exchange reserves. The Treasury's published gilts remit to the Bank of England for 1996–97 states that the bank should aim to sell gilts at a broadly even pace through the year. Within-year fluctuations in the pattern of central Government expenditure and revenue will be met by other financing means, including changes to the weekly Treasury bill tender.

Mr. Brown

To ask the Chancellor of the Exchequer what is the Government's policy in respect of the use of Treasury bills to finance the public sector borrowing requirement; and what assessment he has made of the impact of this policy on inflation. [12029]

Mr. Waldegrave

[holding answer January 1997]: As stated in the Treasury's debt management report for 1996–97, there is no intention that net Treasury bill issuance should contribute to the financing of the central Government borrowing requirement in 1996–97. However, the monthly pattern of issuance will fluctuate in the light of the needs of money market management. This policy will have minimal impact on annual monetary growth.