HC Deb 22 January 2003 vol 398 cc412-5W
Mr. Laws

To ask the Chancellor of the Exchequer what his estimate is of the annual cost of the National Investment and Loan Office in each year from 1990–91 to 2003–04 (planned). [91728]

Ruth Kelly

The annual costs of the National Investment and Loans Office in each year from 1990–91 to 2003–04 are outlined in the table.

Ruth Kelly

National Savings and Investments' Annual Report includes information on "value added". This is a measure of how cost-effective they are at raising finance for government from the retail sector. It is a measure of the difference in the cost of raising funds through NS&I (after taking account of administrative costs and, where appropriate, tax-foregone) and the cost of raising the same amount through similar (ie variable, fixed-rate or index-linked) gilts. By raising cost-effective finance, NS&I help to reduce the overall cost of government borrowing.

The value added figure for 2001–02 was £76.3 million. If administrative costs had been omitted (gross) the figure would have been £232.1 million.

Mr. Laws

To ask the Chancellor of the Exchequer what his estimate is of the outstanding amount of savings and investment with National Savings and Investments, broken down by product; and if he will make a statement. [91730]

Ruth Kelly

The total invested in National Savings and Investments' products at 31 March 2002 was £62.3 billion. The breakdown by product was published in National Savings and Investments Product Accounts 2001–02 on 18 December 2002. The position as at end-March 2002 was as follows:

National Savings and Investments' product breakdown at end
March 2002
£ million
Capital Bonds 1,284
Children's Bonus Bonds 1,209
Fixed Rate Savings Bonds 529
Guaranteed Equity Bonds 40
Income Bonds 9,285

Year Cash accounting basis (£000) Resource accounting basis from 1998–99 (£000)
1990–91 £173,224
(including £6,650 capital expenditure)
1991–92 £181,714
(including £6,143 capital expenditure)
1992–93 £196,960
(including £12,803 capital expenditure)
1993–94 £198,769
(including £4,778 capital expenditure)
1994–95 £196,701
(including £4,046 capital expenditure)
1995–96 £193,520
(including £5,382 capital expenditure)
1996–97 £179,656
(including £3,521 capital expenditure)
1997–98 £175,537
(including £3,066 capital expenditure
1998–99 £171,016 £180,337
(including £6,110 capital expenditure) (including provision of £5,110 for product accounts adjustments which did not form part of public expenditure)
1999–2000 £169,097 £179,661
(including £120 capital disposals) (including provision of £589 for product accounts adjustments which did not form part of public expenditure)
2000–01 £167,429 £165,561
(including £3,300 capital expenditure)
2001–02 £163,847 £174,073
(including £122 capital expenditure
2002–03 £170,608 £171,170
(including £300 capital expenditure)
2003–04 £170,200 £172,300
(including £1,300 capital expenditure)
2004–05 £172,490 £172,300
(including £500 capital expenditure)
2005–06 £170,280 170,300
(including £500 capital expenditure)

Mr. Laws

To ask the Chancellor of the Exchequer what his estimate is of the present(a) maturity structure and (b) average interest cost of outstanding monies borrowed by the UK Government through National Savings and Investments; and if he will make a statement. [91732]

Ruth Kelly

As at end-March 2002, the weighted average maturity for all National Savings and Investments' products is estimated at 4.14 years.

National Savings and Investments' product breakdown at end-
March 2002
£million
Individual Savings Accounts 886
Investment Accounts 7,433
Ordinary Accounts 1,378
Pensioners Guaranteed Income Bonds 4,056
Premium Bonds 17,299
Savings Certificates 18,022
Treasurers' Accounts 61
Products no longer on sale 836
Total 62,318

Mr.Laws

To ask the Chancellor of the Exchequer what his estimate is of the total administration costs for National Savings and Investments in each year from 1990–91 to 2005–06 (planned); and if he will make a statement. [91731]

Ruth Kelly

National Savings and Investment's administratives costs from 1990–91 to 2005– (planned) are outlined in the following table.

The total interest cost of NS&I products (including Premium Bond prizes) for 2001–02 was £2,447 million. This equates to an average interest cost of 3.9 per cent. per annum.

Mr. Laws

To ask the Chancellor of the Exchequer what his estimate is of the annual saving in each of the last 10 years from borrowing money through National Savings arid Investments rather than through conventional issuance of UK Government debt securities; how much of that saving is due to (a) the term structure of debt and (b) the underlying cost of debt; and if he will make a statement. [91733]

Ruth Kelly

National Savings and Investments' Annual Report includes information on "value added", a measure of how cost-effective they are at raising finance for government relative to comparable gilt yields. The measure has only formally been used since 1998–99 so figures are not readily available for earlier years. The figures from 1998–99 to 2001–02 were as follows:

£ million
1998–99 110
1999–2000 329
2000–01 82
2001–02 76