Clause 60 - Index-linked gilt-edged securities

Part of Finance (No. 3) Bill – in a Public Bill Committee at 4:45 pm on 7th June 2011.

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Photo of Mark Hoban Mark Hoban The Financial Secretary to the Treasury 4:45 pm, 7th June 2011

I do not want to create a long-running saga out of what is a relatively small but helpful clause. The point is to facilitate CPI-linked gilt-edged issuance. Should the Government decide to proceed down that route in the future, pension funds will have to decide how they approach this matter and whether there is any appetite for CPI-linked gilt-edged issuance. It is only when the pension funds themselves have reached a decision that we will know what appetite there is and what the impact will be. Rather than waiting for a problem to emerge or for a clamour for action once a problem has been identified, the Government are now making it possible for pension funds to make those changes. The funds know that the opportunity may be there for the Government to issue CPI-linked gilts in the future. It is only once they have decided what they are going to do that we can respond to that demand.