2.37 A number of policy measures announced in the Autumn Statement do not directly affect PSNB in the same way as conventional spending or taxation. These include financial transactions that directly impact only on the central government net cash requirement (CGNCR) and public sector net debt (PSND), and transactions likely to be recorded as contingent liabilities. Table 2.4 shows the effects of financial transactions on CGNCR.
Table 2.4: Financial Transactions: Impact on central government net cash requirement1, 2
| £ million | |||||
| 2011-12 | 2012-13 | 2013-14 | 2014-15 | 2015-16 | 2016-2017 |
i Business Finance Partnership | 0 | -150 | -400 | -350 | -100 | 0 |
ii Get Britain Building | 0 | -310 | -185 | +50 | +60 | +50 |
TOTAL POLICY DECISIONS | 0 | -460 | -585 | -300 | -40 | +50 |
1 Costings reflect the Office for Budget Responsibility's latest economic and fiscal determinants. 2 Following convention, a negative figure shows an increase in the central government net cash requirement. | ||||||
2.38 New build indemnity scheme - The Government announced on 21 November 2011 a guarantee for up to 100,000 new mortgages at up to 95 per cent loan to value for new build properties in England. For each new build property sold under the scheme, the home builder will contribute 3.5 per cent into an indemnity fund, with the Government supporting the fund to a total of nine per cent of the property value. The indemnity fund pays out to the lender if a property financed under the scheme is repossessed and there is a shortfall. Builders will take the first loss in the indemnity, with Government only being called upon to pay once the builder's fund has been exhausted. The Government's maximum contingent liability under the scheme will be capped at £1 billion.
2.39 Credit easing: National Loan Guarantee Scheme - The Government will make available up to £20 billion of guarantees for bank funding over two years. This will allow banks to offer lower cost lending to smaller businesses, subject to state aid approval. This is expected to be recorded as a contingent liability.
2.40 Credit easing: Business Finance Partnership - The Government will make available an initial £1 billion, through a Business Finance Partnership, to invest in SMEs and mid-sized businesses in the UK through non-bank lending channels. This will initially focus on co-investment, with the private sector through loan funds that lend directly to mid-sized businesses. The Government will also consider options for investing through other non-bank channels. This is expected to be recorded as a financial transaction, affecting PSND. (i)
2.41 Get Britain Building - In its Housing Strategy published on 21 November 2011, the Government announced the launch of a new £400 million Get Britain Building investment fund. This is expected to be recorded as a financial transaction, affecting PSND. (ii)