Brexit & EconomyPoliticsNorthern Rock breaks ‘40%’ sustainable investment rule

Northern Rock breaks '40%' sustainable investment rule

'Whether the rule is broken or not is not my judgment' - ONS

breaking Gordon Brown’s ‘sustainable investment’ rule imposed since 1997.

But the Office for National Statistics maintains it cannot judge whether the
‘indicative figure’ of £90.7 billion, which takes debt ‘to the range of 43 or
44%’ would break the rule.

Speaking before a cross-party select committee today, ONS public accounts
adviser Martin Kellaway said: ‘Whether the rule is broken or not is not my
judgment. We’re just producing the statistics. It’s the Treasury that has
responsibility on whether the fiscal rules are met or not.’

Northern Rock’s inclusion in government debt is set to add £100bn to net debt
of £514bn, which is also 35.9% of GDP.

Kellaway and executive director at ONS, Colin Mowl, also admitted that
Treasury had not consulted their office on how Northern Rock’s debt would be
treated in the Budget next week, but admitted a ‘discussion’ had been held with
a Treasury member over the phone over publishing a set of figures with and
without Northern Rock’s figures.

Further reading:

Off balance sheet Rock would be ‘outrageous’

MPs to probe off balance sheet deals

Related Articles

Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

Brexit Financial Secretary to the Treasury on cryptocurrency, Brexit and taxing the digital economy

4w Alia Shoaib, Reporter
HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

Big Four HMRC’s refusal to raid top Tory donor Lycamobile to be investigated by MPs

4w Alia Shoaib, Reporter
Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

Budget Spring Statement 2018: Spring has sprung as chancellor finds his inner Tigger

2m Emma Smith, Managing Editor
Spring Statement live feed

Budget Spring Statement live feed

2m Emma Smith, Managing Editor
Spring Statement 2018: 5 things to look out for

Brexit & Economy Spring Statement 2018: 5 things to look out for

2m Alia Shoaib, Reporter
Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

Politics Financial Secretary to the Treasury on Brexit, Spring Statement, Making Tax Digital and Carillion

4m Emma Smith, Managing Editor
David Davis, Secretary of State for Exiting the European Union

Brexit & Economy David Davis, Secretary of State for Exiting the European Union

4m Alia Shoaib, Reporter
Philip Hammond, Chancellor of the Exchequer

Brexit & Economy Philip Hammond, Chancellor of the Exchequer

4m Alia Shoaib, Reporter