Supplementary note from HM Treasury
Question 43 (Mr Trickett): Does the Treasury publish
accounts and make assumptions about the amount of surplus which
will be used to `help' with the National Debt? Are there assumptions
made? I can easily check in future years.
At the hearing on 12 January, you asked several
questions about how the undistributed balances of the National
Lottery Distribution Fund (NLDF) are forecast and accounted for.
I am writing to complete the explanation I offered at the hearing.
I understand that my colleagues who deal with
the forecast consult DCMS when assessing flows of lottery income
and disbursements from the NLDF. In turn DCMS' advice draws on
information from the lottery operator and the various lottery
distributors. The objective is to make the most realistic forecast
that can be drawn up.
Projections of lottery income score as revenue
and disbursements from the funds score as public expenditure since
lottery income is public money. Total payments by the distributors
form part of annually managed expenditure (AME). Of this, capital
grants (typically more than half of the total disbursements) are
classified as public sector net investment. The most recent figures
were set out in tables B16 and B20 of the Pre-Budget Report of
December 2004, copies of which are enclosed.
As you observed from the NAO report, the Commissioners
for the Reduction of the National Debt hold the undistributed
balances. The Debt Management Office manages these funds and the
amounts involved appear in their Resource Accounts. I attach a
copy of the most recent Report and Accounts of the Debt Management
Account (for 2003-04), which sets out the details of stock and
flows relating to the NLDF.
Paula Diggle
Second Treasury Officer of Accounts
25 January 2005
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