MNI: Canada Apr-Sept Budget Deficit Widens On Spending

CANADA'S TRUDEAU: I CONTINUE TO HAVE GOOD TALKS WITH TRUMP

MNI BRIEF: Little Macro Difference On Rate Oprions- de Guindos

MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov

MNI China Daily Summary: Friday, November 29

MNI BRIEF: China Extends U.S. Import Tariff Exemption List

EZ/UK T-Bill Calendar: Germany, Netherlands, France Due Monday

EZ/UK Bond Supply Calendar: UK, Germany Auction on Tuesday

CANADA Q3 GDP ANNUALIZED +1.0% AS EXPECTED ON GOVT, CONSUMERS

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

UK FISCAL: Guardian sources report PSNFL to be the new fiscal rule (1/2)

UK FISCAL
Homepagemarkets-real-timePolitical RiskPolitical Risk BulletCEEMEABulletUKGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  • There has been a lot of focus this morning on a Guardian piece that states that the Reeves will confirm that a new debt rule will be used to allow a large increase in capital spending (link here).
  • The piece says that Reeves will not confirm at the IMF which measure will be used, but the Guardian noted that a source had confirmed that Public Sector Net Financial Liabilities (PSNFL) would be used.
  • Note that the use of PSNFL was reported by the MNI Policy team to be a likely target in an interview with Andy King (former senior Treasury / OBR official). (See MNI INTERVIEW: UK To Ease Debt Target, Avoid Net Worth Target, 16 October).
  • PSNFL avoids the pitfalls of public sector net wealth (PSNW) which would have required valuations to be placed on infrastructure such as hospitals, schools etc. And PSNFL opens up a little less headroom than PSNW would.
  • However, the Guardian estimates that PSNFL would still have added GBP53bln to headroom if used at the last Budget.
168 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • There has been a lot of focus this morning on a Guardian piece that states that the Reeves will confirm that a new debt rule will be used to allow a large increase in capital spending (link here).
  • The piece says that Reeves will not confirm at the IMF which measure will be used, but the Guardian noted that a source had confirmed that Public Sector Net Financial Liabilities (PSNFL) would be used.
  • Note that the use of PSNFL was reported by the MNI Policy team to be a likely target in an interview with Andy King (former senior Treasury / OBR official). (See MNI INTERVIEW: UK To Ease Debt Target, Avoid Net Worth Target, 16 October).
  • PSNFL avoids the pitfalls of public sector net wealth (PSNW) which would have required valuations to be placed on infrastructure such as hospitals, schools etc. And PSNFL opens up a little less headroom than PSNW would.
  • However, the Guardian estimates that PSNFL would still have added GBP53bln to headroom if used at the last Budget.