Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential implications for his policies on global debt of the publication entitled The Jubilee Report: A Blueprint for Tackling the Debt and Development Crises and Creating the Financial Foundations for a Sustainable People-Centered Global Economy, published on 20 June 2025.

Tackling unsustainable debt is one of the UK government’s international development priorities and we are committed to an international financial system that supports development needs and helps countries address their debt vulnerabilities, aligned with the aim of the recommendations of The Jubilee Report.

The UK supports tailored debt solutions within a consistent international mechanisms, such as the G20 Common Framework, and actively advocates for responsible lending and borrowing practices, as well as enhanced debt transparency from both creditors and borrowers. We agree that the Common Framework could be improved to deliver smoother and more timely solutions. We are advancing these priorities through initiatives like the London Coalition on Sustainable Sovereign Debt, the G20, and the Global Sovereign Debt Roundtable.

Where necessary, we have backed early and comprehensive debt reprofiling, provided such measures credibly restore sustainability. We also agree that prioritising growth in borrower countries is essential for achieving long-term debt sustainability, and our focus remains on solutions that prevent defaults before they arise.

We have implemented contractual innovations, such as climate-resilient debt clauses (CRDCs) for which we were the first creditor to do so, to help borrowers manage liquidity pressures following shocks, and are working with the private sector to expand their adoption. We are also pushing for the integration of climate risks into debt sustainability analyses and are pressing this agenda with the IMF and World Bank.

The UK remains a strong advocate for comparability of treatment in debt restructurings. At present, we do not see a case for further legislation, as there is little evidence of private sector holdouts in negotiations, although we keep this under review.

We recognise that in many low-income countries high debt servicing costs are crowding out spending on public health. To support low-income and emerging market countries with short-term liquidity challenges we support the IMF and World Bank’s Three Pillar Approach, which combines structural reforms, domestic resource mobilisation and external financial support to reduce debt burdens. We are pushing for the Three Pillar Approach to be rolled out swiftly, including for the IMF and World to actively engage early with affected countries to ensure they are informed of what support is available.