The Government’s policy on funding the gross financing requirement is set out in the “Debt Management Review” 1995, published by HM Treasury and the Bank of England, which states that:
“Beginning in 1996-97, the Government has decided to introduce a new framework to financing... The Government will aim to sell sufficient gilts of any maturity, Treasury bills and National Savings products to finance the CGBR (plus maturing debt and any net increase in the official foreign exchange reserves). All debt such issuance will take place within a set maturity structure, to be determined and published each year.... The Government has no current plans to make significantly greater use than at present of short-term debt issuance...."
The most recent expression of this policy was set out in paragraph 4.1 of the “Debt and reserves management report” 2008-09, published alongside Budget 2008, which states that:
“The Government intends to continue to finance the central government net cash requirement (CGNCR) using the framework that was established in the 1995 Debt Management Review. The Government aims to finance its net cash requirement plus maturing debt and any financing required for additional net foreign currency reserves through the issuance of debt. All such debt issuance will take place within a set maturity structure...”