To ask the Chancellor of the Exchequer how ways and means advances from the Bank of England to Governments operate; and what proposals he has for monetising rather than funding any proportion of the public sector borrowing requirement by means of such advances.
The daily flows of cash between the Consolidated Fund and the National Loans Fund may result in either a surplus or a deficit on the National Loans Fund. Where there is a deficit, that deficit is met by ways and means advances from the Bank of England.The Government have no intention of monetising rather than funding any proportion of the public sector borrowing requirement by means of such advances.
To ask the Chancellor of the Exchequer when the prohibition of overdraft facilities with the Bank of England in the proposed article 104 in the Maastricht treaty is proposed to come into effect.
Article 104 would come into effect on 1 January 1994. Under paragraph 11 of the protocol on "Certain Provisions relating to the United Kingdom of Great Britain and Northern Ireland", the United Kingdom may maintain its ways and means facility with the Bank of England if, and so long as, the United Kingdom does not move to the third stage of economic and monetary union.
To ask the Chancellor of the Exchequer what recourse he has had to ways and means advances from the Bank of England in each year since 1979; and for what amounts.
The level of ways and means advances outstanding fluctuates from day to day. The ways and means advances outstanding on the last working day of each financial year, which includes ways and means advances from the Bank of England, is published in the supplementary statements to the Consolidated Fund and National Loans Fund accounts for that year.
To ask the Chancellor of the Exchequer what interest rate is payable on ways and means advances from the Bank of England to (a) central Government, (b) local authorities and (c) nationalised industries.
The interest rate payable on ways and means advances to central Government is the band 1 eligible Bill rate. The Bank of England has no ways and means arrangement with either local authorities or nationalised industries.
To ask the Chancellor of the Exchequer if he will bring forward proposals for the Bank of England's report of its supervisory functions under the Banking Act 1987 to include details of support operations to authorised banking institutions; and if he will make a statement.
Section 1(3) of the Banking Act 1987 requires the Bank to make an annual report on its activities under the Act. I have no intention of varying these requirements. It is for the Bank of England to decide whether to include in the Banking Act report matters other than its activities under the Act.