Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect on the public sector net debt of selling existing foreign currency reserves.

There has been no assessment made of the effects of selling existing foreign currency reserves.

The reserves have a clearly defined function as set out in the Exchange Equalisation Account (EEA) Act 1979. The foreign exchange reserves are held on a precautionary basis in the event of any unexpected shocks and are also used to provide foreign currency services for government departments, and to carry out the UK’s obligations under its membership of the IMF.

The Chancellor set out new fiscal rules at Budget, and the OBR has confirmed we are on track to see debt falling by 2024-25, and to meet all our fiscal rules.