Commons Sense

House of Commons · Written Ministerial Statement

Notification of Contingent Liability

12 November 2024 · Treasury

Proposed by Rachel Reeves Lab Leeds West and Pudsey

Economy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • HM Treasury has reduced the authorised maximum total size of the Asset Purchase Facility (APF) to 654.5 billion, comprising solely of gilts.
  • The Government continues to provide indemnification for any losses related to the APF.
  • Regular monitoring and oversight of the risk control framework remains in place.

Issue summary

The statement discusses the reduction of the Asset Purchase Facility (APF) size and the ongoing indemnification by the Government for any losses related to the facility.

Action requested

HM Treasury has reduced the authorised maximum total size of the APF to £654.5 billion, comprising solely of gilts. The risk control framework remains in place, with regular monitoring and oversight continuing.

Key facts

  • The MPC decided to reduce stocks held in the APF by ceasing to reinvest maturing securities from February 2022.
  • Sales of corporate bonds ceased on 6 June 2023 with outstanding bonds reaching maturity on 5 April 2024.
  • As of 30 April 2024, the total stock of assets in APF fell to £654.5 billion from £704.2 billion.
  • The authorised maximum size of APF has been reduced to £654.5 billion.
  • HM Treasury will continue monitoring risks through regular risk oversight meetings and enhanced information sharing with the Bank.
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