§ Mr. LawsTo ask the Chancellor of the Exchequer (1) if he will make a statement on the treatment of Network Rail's financing as Government debt in the national accounts; [85177]
(2) what plans he has to include the total borrowings of Network Rail in the national accounts as Government debt. [85178]
§ Mr. BoatengNetwork Rail is classified as a private sector corporation in national accounts. Its financial transactions, such as borrowing, are recorded in the financial account of the corporations' sector in national accounts. Its borrowing is not therefore included in the Government sector.
Government provide subsidies and investment grants to the rail industry, mainly to train operating companies. These payments are counted as part of Government expenditure and would add to Government debt if not financed by Government revenue.