13.08.14
Creative ways sought to shift Network Rail debt off UK balance sheet
Ministers and officials are exploring ways to get around the accounting changes that would see Network Rail’s £34bn added to the public’s balance sheet, according to the Financial Times.
Network Rail is to be reclassified as a public body on 1 September, which will, in turn, increase the UK’s public sector net debt.
However, the FT states that officials and ministers are considering ways to structure the group and remove it off the balance sheet, especially as recent Office for National Statistics (ONS) figures revealed public sector finances, excluding financial sector interventions, showed a deficit of £11.368bn in June.
It has been suggested that by restructuring Network Rail as a government company, it wouldn’t have to be added to the ONS reports. The model would be the Highways Agency.
The FT quoted a source saying: “The idea is to get it off balance sheet again within two years. There will be a real keenness to work with Network Rail to get it off balance sheet very quickly.”
Tell us what you think – have your say below or email [email protected]