HM Treasury announces update to 2020-21 government financing targets

Thursday July 16th, 2020

The government has delivered an unprecedented package of measures to provide the critical support needed by individuals, families and businesses, through the economic disruption caused by COVID-19, and set out a plan to support jobs as the economy reopens.finance_3856094Sml

This has necessarily increased the government’s financing requirement compared to that set out at Budget 2020. The Chancellor has already outlined that this will be fully funded through the government’s normal debt management operations.

HM Treasury (HMT) is today announcing a further revision to the UK Debt Management Office’s (DMO’s) financing remit for 2020-21, covering the September to November 2020 period. This follows the previous revision to the DMO’s financing remit for 2020-21, published on 29 June 2020.

Planned gilt sales from April to November 2020 inclusive will total a minimum of £385 billion, based on the government’s latest assessment of its financing requirement. The DMO is today publishing details of the provisional gilt issuance schedule for September to November 2020 on its website.

The higher volume of issuance seen so far this year due to COVID-19 is not expected to persist over the final four months of the year.

A further update to the DMO’s financing remit and planned issuance schedule for 2020-21 will be announced at the Autumn Budget.

At Budget 2020, NS&I was set a net financing target of £6 billion for 2020-21, within a range of £3 billion to £9 billion. The target is being increased by £29 billion to £35 billion, within a range of £30 billion to £40 billion.

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