DefinitionsMarket holdings of Central Government Gross Debt consist of all holdings outside of the central government sector, but include holdings by local government, public corporations and the Issue and Banking Departments of the Bank of England. They exclude holdings by other central government bodies (principally the Debt Management Office, the Commissioners for the Reduction of the National Debt, other government departments and the Exchange Equalisation Account). They also exclude debt guaranteed by the government (e.g. London and Continental Railways).
Market holdings of sterling Central Government Gross Debt presented here exclude non-interest bearing notes held by the International Monetary Fund (IMF). Although these are liabilities of the National Loans Fund (NLF), they are not part of Central Government Gross Debt since they are netted off the Reserve Tranche Position – part of central government assets.
Other components of sterling Central Government Gross Debt are:
British government securities (BGS): marketable, interest-bearing securities issued by the UK government. The nominal value of index-linked gilt-edged stocks has been increased by the amount of accrued capital uplift. The whole nominal value of all issued stocks is recorded, even where there are outstanding instalments due from market holders.
Treasury bills: short term instruments with variable maturity. The bills are sold at a discount and redeemed at par, and can be traded on the secondary market. The amount of discount depends on the price accepted by the Debt Management Office (DMO) at their tender.
National savings products: non-marketable debt comprising publicly available products. Savings bank comprises deposits on ordinary accounts of the National Savings Bank plus the liability to the Trustee Savings Bank of the Fund for the Banks for Savings (a government fund operated by the National Investment and Loans Office) which has been zero since the end of June 1986.
Certificates of tax deposit: non-marketable debt available to tax payers generally that may be used in payment of most taxes.
Other sterling debt: includes Ways and Means advances (the method by which government departments etc. lend overnight to the NLF); DMO outstanding transactions with the market; NILO stocks (non-marketable stocks, issued directly to the National Debt Commissioners, whose terms reflect those on existing BGS); and the temporary deposit facility (deposits by central government bodies and public corporations with the NLF; and local government deposits with the DMO). It also comprises market holdings of Northern Ireland government debt (principally Ulster Savings Certificates), the balances of certain public corporations with the Paymaster General, other third party deposits (from the Insolvency Service), funds held on behalf of the European Commission, and net liabilities, guaranteed by government, of the Guaranteed Export Finance Company (GEFCO), since its reclassification to the central government sector from 1987.