Public bank relocates to City quarters

4 Jul 02
The institution that acts as a public sector 'bank' this week relocated to the City.

05 July 2002

Ministers have taken the decision to move the Public Works Loan Board to the headquarters of a City-based arm's-length Treasury body, the UK Debt Management Office.

The PWLB, which loans money to councils, usually for capital projects, at cheaper rates than can be obtained from private sector lenders, will retain its role as a 'bank'.

However, ministers say the reorganisation, which also merges the Office of the Paymaster General with the Treasury, must lead to improvements in public sector debt and asset management.

'This reorganisation, while maintaining the provision of existing services, is designed to deliver improved management of the central government balance sheet, and to offer a more robust, flexible and innovative service to public sector clients,' said Ruth Kelly, financial secretary to the Treasury.

A spokesman for the DMO said the revamped office was part of ministers' drive to create 'pockets of expertise' within government.

Latest figures show the PWLB lent around £44bn in 1999.

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