47881_Budget_2015_Web_Accessible

National Savings and InvestmentsB.14 NS&I will have a net financing target of £10.0 billion in 2015-16, within a range of £8.0to £12.0 billion. This target accommodates the extension of NS&I’s market-leading bonds forpeople aged 65 and over (the ‘65+ bond’), until 15 May 2015, as well as the increase in thePremium Bond limit from £40,000 to £50,000 from 1 June 2015.Table B.1: Financing arithmetic in 2014-15 and 2015-16£ billion 2014-15 2015-16CGNCR (ex NRAM, B&B and NR) 1 96.2 78.9UKAR adjustment 0.0 6.7Gilt redemptions 64.5 70.2Planned financing for the reserves 12.0 6.0Gilt secondary market purchases 0.0 0.0Financing adjustment carried forward from previous financial years -30.2 -11.3Gross financing requirement 142.4 150.6less:Net contribution from National Savings and Investments 18.3 10.0UK sovereign Sukuk 0.2 0.0Renminbi denominated bond 0.3 0.0Other financing 2 0.3 0.2Net financing requirement (NFR) for Debt Management Office (DMO) 123.3 140.4Financed by:Debt issuance by DMOa) Treasury bills (planned change in stock issued via tenders) 8.5 7.0b) Gilt sales 126.1 133.4of which:Short conventional 31.9 33.9Medium conventional 27.9 26.7Long conventional 34.1 37.4Index-linked 32.3 31.4Unallocated supplementary sales 4.0Planned change in the level of Ways and Means 0.0 0.0Total financing 134.6 140.4Short-term debt/cash levels at end-financial yearEnd-year Treasury bill stock via tenders (in market hands) 3 65.0 72.0Ways and Means 0.4 0.4DMO net cash position 11.8 0.5Figures may not sum due to rounding.1This excludes Network Rail’s cash requirement, but includes HM Treasury’s requirement for financing lending to Network Rail. This was presented as aseparate item in the financing arithmetic at April 2014.2From Autumn Statement 2014 onwards, the financing arithmetic has included provision for small sources of additional financing. This includes nongovernmentaldeposits, coinage and certificates of tax deposit. Prior to publication of the end-year outturn in April each year, this financing item willonly comprise estimated revenue from coinage.3The DMO has operational flexibility to vary the end-financial year stock by a maximum of £5 billion relative to the planning assumption, to offset anyanticipated net Exchequer cash surplus or deficit towards year-end.Budget 2015105