To provide a complete view from across the UK Government’s portfolio, this annual report from UK Government Investments (UKGI) brings together data on £250bn (expected cost) of financial guarantees, indemnities, contingent liabilities and provisions.
The report aims to:
- Identify the scale of risk government is exposed to through its contingent liabilities
- Categorise risk by examining sector concentrations to better understand the overall composition of the portfolio
- Assess whether government’s fee charging mechanisms across financial guarantees are sufficient to cover the risk it is exposed to through these schemes
- For the first time, determine the potential additional costs that could result from a major shock in the economy or financial markets
- Enable the government to consider the impact new policy decisions might have on the entire portfolio and how to improve value for money
This work demonstrates government’s commitment to fiscal discipline, transparency and efficiency.
We have taken a significant step forward with this report and associated work across government, bringing together management information combined with published financials to review the ‘stock’ of outstanding exposure. This means generating insights for government based on aggregated data and quantifying the government’s exposure.
– Siobhán Duffy, Director of UKGI’s Financial Instruments and Transactions Advisory Group (FInTAG)
The Financial Instruments and Transactions Advisory Group (FInTAG) is an analytical and advisory unit within UKGI. FInTAG has been established to strengthen expertise on contingent liabilities, loans and equity investments within government.
This report is one facet of FInTAG’s work to examine, report and advise on Government’s financial instruments and transactions to improve decision making. Read more about FInTAG’s work on the website page – Contingent Liabilities – UK Government Investments (UKGI). A summary of the report’s insights can also be accessed on this page.
