To ask Mr Chancellor of the Exchequer, pursuant to the Written Statement of 6 February 2017, HCWS458, how his Department defines value for money in relation to the policy to sell public assets; and whether he will place a copy of the evidence base for that definition in the Library.
Answered on
22 February 2017
HM Treasury’s “Green Book” outlines the framework that is used to assess the value for money of public spending decisions, including asset sales. Supplementary guidance is provided in “Value for money and the valuation of public sector assets”.
The Department to whom an asset belongs is responsible for the sale process of that asset. The Economic Secretary to the Treasury is the minister responsible for the financial sector assets which the Treasury owns (Royal Bank of Scotland, Lloyds and UK Asset Resolution).
Whether there is a policy reason for the government to continue to hold an asset is assessed on a case-by-case basis. With regards to student loans, the policy objective of issuing a loan is to allow access to higher education. This purpose is achieved once the loan is made.
The government takes expert advice on market conditions ahead of any significant asset sale.
The government will inform the House by way of a statement when the sale of a significant public asset is completed.