47881_Budget_2015_Web_Accessible

Financial transactions and contingent liabilities2.11 A number of policy measures announced in the Budget do not directly affect public sectornet borrowing (PSNB) in the same way as conventional spending or taxation. This includesfinancial transactions that only affect the central government net cash requirement (CGNCR) andpublic sector net debt (PSND), and transactions likely to be recorded as contingent liabilities.Table 2.6 shows the effect of financial transactions on CGNCR.Table 2.6: Financial transactions: impact on central government net cash requirement 1£ millionFinancial transactions 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20i Additional sales of Lloyds shares 0 +9,000 0 0 0 0ii Financial transactions adjustment 2 0 -490 0 0 0 0TOTAL POLICY DECISIONS 0 +8,510 0 0 0 01Costings reflect the OBR’s latest economic and fiscal determinants, and are presented on a UK basis.2This is a neutral reclassification from PGSI to Financial Transactions. See Table 2.1 for offsetting adjustment.Asset Sales2.12 Nationalised bank asset sales – UK Asset Resolution (UKAR) is launching a major saleof £13 billion of assets held from the nationalisation of Northern Rock and Bradford & Bingley.Any sale will be subject to ensuring value for money for the taxpayer.2.13 Lloyds Banking Group share sales – The government intends to sell £9 billion of itsholdings in Lloyds Banking Group over the next 12 months, subject to value for money andmarket conditions.2.14 Eurostar – The Treasury has signed a binding agreement to sell its entire holding inEurostar International Limited for £757.1 million. Subject to receiving the necessary regulatoryapprovals including EU merger clearance, closing is expected to take place during the secondquarter of 2015.2.15 Asset sales – Progress continues towards the sale of the government’s stake in Urenco,the pre-2012 income contingent repayment student loan book and public sector spectrum. Theincome contingent repayment student loan book will be disposed of in a number of tranches,with a first sale intended to occur by the end of financial year 2015-16. Over a 5 year period, thesale is expected to generate between £10 billion and £15 billion in sale revenues, with a centralestimate of around £12 billion. Borrowers’ loan terms will be fixed prior to a sale.Public sector reform and efficiency2.16 Progression pay – The government has agreed proposals with all departments to removeany remaining entitlement to contractual progression pay in the civil service workforce.2.17 Survivors’ pensions – The government will ensure that all widows, widowers and civilpartners of police officers and firefighters who are killed on duty will no longer lose their survivorbenefits if they remarry, cohabit, or form a civil partnership. The government will also examinethe possibility of making similar changes for members of the security services killed on duty.On 1 April 2015, the government will be introducing new and reformed public service pensonschemes. All these new schemes will allow widows, widowers and civil partners across the publicsector workforces to retain survivor benefits if they remarry, cohabit or form a civil partnership.2.18 Land and property reform – The government will implement a new commerciallydrivenmodel of land and property asset management across the central government estate,based on departments paying market-level rents for the freehold assets they own. Thegovernment will create a new central body or bodies to own and manage relevant property andland assets. Subject to legislation the model will be operational by March 2017.Budget 201571