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<p>The majority of central government borrowing is financed through gilt issuance
by the Debt Management Office (£126.4 billion in 2014-15).</p><p> </p><p> </p><p>
</p><p>Other sources of central government financing in 2014-15 were:</p><p> </p><ul><li><p>National
Savings and Investments – net financing of £18.2 billion</p></li><li><p>Treasury bills
– net financing of £8.5 billion</p></li><li><p>Renminbi bond – net financing of £0.3
billion</p></li><li><p>Sukuk – net financing of £0.2 billion</p><p> </p><p>Total financing
through these sources in 2014-15 totalled £27.2 billion.</p><p> </p><p>Local authorities
have flexibility to determine their sources of borrowing within the prudential code
borrowing regime. Local authorities undertake the majority of their borrowing via
the Public Works Loan Board (PWLB), a statutory body operating within the Debt Management
Office. The PWLB’s function is to lend money from the National Loans Fund to local
authorities and to collect repayments.</p><p> </p><p>From April 2015, the Scottish
government has the power to borrow up to a total of £2.2 billion for capital investment
by way of bond issuance as well as via the National Loans Fund and commercial loans.
The coalition government announced in February 2015 that the Welsh government’s means
of borrowing for capital investment from April 2018, up to a total of £500 million,
will also be extended to include bond issuance.</p><p> </p></li></ul><p> </p>
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