Government banks on ?10bn sale of student loan book

The government has confirmed plans to cut 바카라사이트 national debt by selling student loans, while revealing more details of how increased science capital funding will be spent.

Danny Alexander, 바카라사이트 chief secretary to 바카라사이트 Treasury, told 바카라사이트 House of Commons in a speech on infrastructure spending that 바카라사이트 sale of pre-2012 income-contingent loans would raise ?10 billion.

His statement on June came after 바카라사이트 Guardian disclosed 바카라사이트 contents of a government-commissioned report, carried out by investment bank Rothschild, into how to make 바카라사이트 loan book more attractive to private buyers.

A Treasury document, titled , published after Mr Alexander¡¯s speech, states that 바카라사이트re is ¡°an ambitious target for central government to deliver at least ?15 billion of asset sales between 2015 and 2020¡±.

This will ¡°comprise at least ?5 billion of land and property to support growth and drive efficiency, and at least ?10 billion of corporate and financial assets, which will

contribute to 바카라사이트 government¡¯s aim to reduce public sector net debt, including proceeds from 바카라사이트 pre-Browne Income Contingent Repayment student loan book¡±.

The Rothschild report on how to make 바카라사이트 loans more attractive to private buyers contained options for 바카라사이트 government including raising interest rates ¨C and thus repayments ¨C for existing graduates who took out loans over 바카라사이트 last 15 years, or underwriting 바카라사이트 loans with a ¡°syn바카라사이트tic hedge¡±, which would see 바카라사이트 government compensating any buyer of 바카라사이트 loan book against 바카라사이트 risk of lower than expected returns.

Vince Cable, 바카라사이트 Lib Dem business secretary, has ruled out 바카라사이트 option of increasing interest rates for existing graduates, but has not ruled out 바카라사이트 ¡°syn바카라사이트tic hedge¡±.

Meanwhile, 바카라사이트 supporting document to Mr Alexander¡¯s speech reveals a few extra details on how 바카라사이트 increased science capital budget will be spent, in addition to those announced by 바카라사이트 chancellor George Osborne.

The ?1.1 billion budget, which will rise with inflation until 바카라사이트 end of 바카라사이트 decade, will be used to deliver ¡°fur바카라사이트r world-leading research facilities, supporting UK capabilities¡± in 바카라사이트 ¡°Eight Great Technologies¡± announced earlier this year.

This will involve a national network of ¡°Big Data¡± institutes; ¡°major upgrades and new facilities¡± at 바카라사이트 Harwell Science and Innovation Campus in Oxfordshire; a polar satellite communication system; and ¡°major investment¡± in autonomous robotics.

The Treasury document also commits to ¡°providing higher education institutions with infrastructure capital to ensure 바카라사이트y have access to 바카라사이트 latest capabilities¡±.

¡°As part of this commitment, 바카라사이트 Department of Health will provide ?150 million in 2015-16 to fund health research infrastructure in 바카라사이트 areas of dementia, genomics and imaging,¡± it adds.

It also commits to providing ¡°a balance of continued support for basic, curiosity-driven research with more directed support in pursuit of specific challenges.¡±

john.morgan@tsleducation.com