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<p>The ability to borrow direct from markets is highly restricted in government. Government
borrowings are largely made up of gilts held by the National loans fund, National
savings and Investment products held by the National loans fund and Treasury bills
held by the Debt Management Account. This is managed by the debt management office
, who publish an annual Debt management report to provide transparency on debt financing.</p><p>
</p><p>Managing Public Money (paragraph 5.8, 5.9 and Annex 5.5) set out the rules
for central government bodies in respect of borrowing. Treasury approval for borrowing
from the National Loans Fund requires Treasury consent and specific legal powers (MPM
5.8.1). External borrowing also requires Treasury approval (MPM 5.9.1). Loan guarantees
require provisions in estimates, specific statutory powers and Treasury approval.</p><p>
</p><p>Local authorities are responsible for managing their own borrowing plans. Local
authorities are not supposed to knowingly borrow in advance of need.</p><p> </p><p>The
borrowing caps for the Scottish and Welsh Governments are set out in the respective
fiscal framework documents while the borrowing cap for the Northern Ireland Executive
is agreed with the Chief Secretary as part of spending review negotiations. The devolved
administrations do not have the flexibility to defer borrowing from one year to the
next.</p>
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