asked the Chancellor of the Exchequer if he has yet reached any decision on the exclusion of third party finance, where it is supplied for the purposes of energy saving schemes, from the calculation of the public sector borrowing requirement; and if he will make a statement.

The Treasury supports the introduction of cost-effective energy conservation measures in the public sector estate; and is considering with the Department of Energy guidance for public sector bodies to clarify the use and assessment of contract energy management schemes. The impact which third party schemes have on the PSBR depends on the particular characteristics of the schemes concerned.