1 In 1996, NS&I conducted a strategic review supported by Corporate Value Associates to determine whether its business added value for the taxpayer and how such value might be maximised in the future. The review concluded that NS&I adds value for the taxpayer through being cost effective in raising funds from retail savers compared to the cost of raising funds by issuing gilts to participants on the wholesale capital market. Such added value equates to a pound for pound reduction in public expenditure. This appendix provides a brief explanation of how this added value arises and how it can be measured.