You asked
I would like to know the details of a meeting held between the Office for National Statistics' National Accounts Classifications Committee (NACC) and HM Treasury held on or around December 18, 2014.
The meeting contained preliminary discussions of the classification of Hinkley Point C and the status of the Government's loan guarantee and its impact on the national accounts. Minutes were made of this meeting.
I would like a copy of the minutes made of this meeting. It is of public interest as the classification of Hinkley Point could affect the Government's borrowing targets. I would specifically like to know:
Which parts of the balance sheet could the classification of Hinkley Point affect? Is it public sector net borrowing (PSNB), public sector net debt (PSND), public sector net cash requirement (PSNCR), all or none or all of the above?
When is the next time this topic will be discussed?
We said
Thank you for your request. However, I must inform you that there was no meeting between the ONS National Accounts Classifications Committee (NACC) and HM Treasury on 18th December 2014 or any other date in 2014. The committee does not meet with HM Treasury regularly or on an ad-hoc basis; the only meetings at which the NACC convenes are those where classification decisions are discussed in accordance with our published policy. Therefore, ONS does not hold the information requested in part (1) of your query.
To answer your question (1a) on which parts of the balance sheet could be affected by the classification of Hinkley Point C; construction of a new power station asset would be shown in the National Balance Sheet, irrespective of how the arrangement is classified. The public sector balance sheet (which, for the avoidance of doubt, is the subset of the National Balance sheet pertaining to the public sector) could be affected by the classification of Hinkley Point C and depending on the final classification decision some, all, or none of the public sector fiscal aggregates that you mention could be affected.
However, precisely which balance sheet items and fiscal aggregates would be affected by the proposal (if implemented) cannot be known until the correct classification and accounting has been established. ONS are currently in the process of establishing the appropriate recording for the proposed Hinkley Point C; a process which involves gathering and analysing relevant information (in the context of the classifications rules set in the European System of Accounts 2010 legislation), and which culminates in consideration by the National Accounts Classifications Committee (possibly over a number of meetings if necessary) to establish the classification.
Finally, regarding your question 1b 'when is the next time this topic will be discussed?'; the next time Hinkley Point C will be discussed will be by those ONS staff involved in the on-going process of gathering and analysing the relevant information in preparation for consideration by the committee. These discussions occur informally and help the team to establish the facts, identify relevant guidance, and to ensure details are communicated clearly and precisely to enable the committee to make its deliberations.
Once a decision has been reached, this will be communicated via our usual publication channels.