Skip to content

Section 5: Size of Impact

As a result of the decisions reached, the immediate impact on the different fiscal measures is as follows:

General Government Net Borrowing (GGNB) under the Maastricht definitions
- reduction of GGNB by an estimated £6.4bn in 2012-13 (based on a 2011-12 Entrepreneurial Income of £9.1bn, the Special Liquidity Scheme transfer of £2.3bn in April 2012 and in year transfers of £0.4bn from the Issue Department)
- reduction of GGNB by an estimated £12bn in 2013-14 (based on a 2012-13 Entrepreneurial Income of £12bn and transfers from the BEAPFF in excess of this – HMT has indicated plans to transfer significantly more than £12bn from the BEAPFF in 2013-14)

Public Sector Net Borrowing excluding temporary effects of financial interventions (PSNB ex)
- reduction of PSNB ex by an estimated £6.4bn in 2012-13 (as for GGNB)
- reduction of PSNB ex by an estimated £12bn in 2013-14 (as for GGNB)

Public Sector Net Borrowing including temporary effects of financial interventions (PSNB)
- no change to PSNB (due to consolidation within the public sector)

General Government Net Debt (GGND) under the Maastricht definitions
- no direct impact on GGND (as no direct change to government liabilities)
- GGND will grow more slowly than it would if the cash transfers were not taking place due to the additional cash held by the Government

Public Sector Net Debt excluding temporary effects of financial interventions (PSND ex)
- reduction of PSND ex by an estimated £11.3bn by the end of 2012-13 (as net debt is defined as gross debt minus liquid assets and therefore all the transferred cash, which is a liquid asset, will reduce net debt)
- reduction of PSND ex by the end of 2013-14 will be the accumulated sum of all cash transfers from the BEAPFF during 2012-13 and 2013-14

Public Sector Net Debt including temporary effects of financial interventions (PSND)
- no direct impact on PSND (due to consolidation within the public sector)
- PSND will grow more slowly than it would if the cash transfers were not taking place due to the additional cash held by the Government

Central Government Net Cash Requirement (CGNCR)
- reduction of CGNCR by an estimated £11.3bn in 2012-13 (as all the transferred cash will reduce government cash requirements)
- reduction of CGNCR in 2013-14 will be equivalent to all cash transferred from the BEAPFF during 2013-14

Public Sector Net Cash Requirement (PSNCR)
- no change to PSNCR (due to consolidation within the public sector)

 

Content from the Office for National Statistics.
© Crown Copyright applies unless otherwise stated.