Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question
To ask the Secretary of State for Digital, Culture, Media and Sport, with reference to the National Audit Office's report entitled Government cyber resilience, published on 29 January 2025, how many of the critical IT systems with significant gaps in government cyber resilience have since been reassessed.
Answered by Ian Murray - Minister of State (Department for Digital, Culture, Media and Sport)
The critical systems referenced in the National Audit Office report were assessed by GovAssure – Government's cyber assurance programme. Of the 72 assessed systems referenced in the report, 18 have been reassessed since publication.
GovAssure requires organisations to scope and assess their critical IT systems on an annual basis in tranches, prioritising Critical National Infrastructure systems first. Once assessed, organisations will work through Targeted Improvement Plans, so systems may not be immediately reassessed the following year whilst remediation is ongoing.
Government has acknowledged that it faces significant cyber security and resilience risks and has set out its wider package of measures to tackling these through the Government Cyber Action Plan, published in January 2026 and backed by over £210 million.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his department has made of changes in the share of global foreign-exchange reserves accounted for by the US dollar when determining the asset allocation of the Exchange Equalisation Account.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of the UK’s official reserve assets carries (a) sovereign, (b) financial institution and (c) other counterparty credit exposure.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential role of gold in reducing currency concentration risk within the UK’s official reserves.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his department has established a target range for the proportion of official reserves held in assets without counterparty credit risk.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of the UK’s foreign-currency reserve assets is invested in securities issued or guaranteed by foreign governments.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the UK’s exposure to US-dollar-denominated assets within the official reserves.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what comparative assessment his Department has made of the proportion of official reserves held in gold by (a) the United Kingdom, (b) France, (c) Germany, (d) Italy, (e) Poland, (f) the United States and (g) other G7 countries.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his department has made of the effect on the Exchange Equalisation Account of a (a) 10 per cent, (b) 20 per cent and (c) 30 per cent depreciation of the US dollar against sterling.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.
Asked by: David Reed (Conservative - Exmouth and Exeter East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the potential impact of levels of gold purchases by overseas central banks since 2022 on UK reserve-management policy.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The government does not comment on market movements. Assets in the Exchange Equalisation Account (EEA) are held to meet the EEA’s core policy objectives as defined in the EEA Act 1979. All EEA investment decisions, including the currency and asset composition of the Account, are made using the following investment principles:
Investment Principle 1 (readiness) – The EEA must be ready to meet its policy objectives at all times, at an acceptable cost and high degree of certainty.
Investment Principle 2 (risk tolerance) – The EEA must not take on risk that compromises the ability to meet Principle 1 or that could unduly influence fiscal metrics.
Investment Principle 3 (return) – Subject to meeting Principles 1 and 2, the EEA should seek to optimise risk-adjusted return
Foreign exchange risk is one of the primary market risks faced by the EEA and so is considered by HMT and the Bank of England when making decisions assessing the EEA’s risk tolerance under Investment Principle 2. A portion of EEA assets are also hedged against foreign exchange and interest rate changes.
To manage credit risk, the Bank maintains a framework of issuer credit limits. A similar framework applies to counterparty risk.
The EEA has held 9.98 million ounces of gold on a permanent basis since March 2002 and it remains an important component of the diversified portfolio.
The Bank of England publishes a monthly statistical release setting out the EEA’s holdings split by broad asset class on the third working day at: UK International Reserves - August 2026. In addition, each quarter, one month in arrears, data on the currency breakdown of the UK’s reserves is published by the Bank of England at: Bank of England | Database.