§ Mr. CousinsTo ask the Chancellor of the Exchequer what his policy is on the granting of requests for debt write-offs by national and local government and wholly-owned companies of the Government; how many such debt write-offs have been agreed since 1996–97; and which Minister gave approval to such write-offs in each case. [10926]
§ Mr. Andrew SmithThe Treasury expects all public bodies to have appropriate systems to manage their finances within the funds available and to take a prudent approach to the raising and financing of debt. While Treasury approval is generally required for write-offs, the final decision in individual cases rests with the relevant Secretary of State. The decision to remit lending will of course depend on the particular circumstances of the case.
Departments are responsible for accounting for all loans, including write-offs. In the case of loans from the National Loans Fund, primary legislation is required before any loan can be written off. In the case of lending financed by Departments, all other write-offs must be recorded in the accounts of the leading department and any remission of voted lending above £20 million is reported to Parliament by way of a Treasury Minute.