Treasury loan book calculations ¡®omit ?1.7 billion¡¯

Andrew McGettigan, author of The Great University Gamble, who spotted 바카라사이트 omission, claimed on his blog that 바카라사이트 Treasury¡¯s .

The Treasury said 바카라사이트 omission of 바카라사이트 lost graduate repayments from its calculations was ¡°for reasons of commercial sensitivity¡± (바카라사이트 government is yet to agree any sale of 바카라사이트 loans).

However, 바카라사이트 development is likely to increase fears among some in 바카라사이트 sector that 바카라사이트 expansion policy is not been properly financed.

In last week¡¯s Autumn Statement, 바카라사이트 Treasury outlined plans to finance 바카라사이트 abolition of student number controls by 2015-16 ¨C creating an estimated 60,000 extra student places a year ¨C by 바카라사이트 sale of pre-2012, income-contingent student loans.

The expansion will cost ?2 billion a year by 2018-19, 바카라사이트 Treasury estimates.

But 바카라사이트 sale of loans means not just income from 바카라사이트 sale of 바카라사이트 asset, but also lost income from future graduate repayments.

Dr McGettigan suggested on his blog that 바카라사이트 Autumn Statement documents showed 바카라사이트 Treasury had .

He noted a passage in a report from 바카라사이트 government¡¯s Office for Budgetary Responsibility, published immediately after 바카라사이트 Autumn Statement. ¡°Selling 바카라사이트 loan book reduces repayments over 바카라사이트 latter years of our medium-term forecast, by just under ?1 billion in 2018-19, and beyond, whereas removing 바카라사이트 numbers cap increases forecast outlays by around ?2 billion by 2018-19,¡± says 바카라사이트 OBR.

Dr McGettigan said 바카라사이트 omission of lost repayments meant that 바카라사이트 Treasury¡¯s sums needed to be revised downwards by a total of ?1.7 billion in 바카라사이트 three years to 2018-19.

The Treasury responded last night in a statement.

¡°Consistent with 바카라사이트 OBR¡¯s approach and for reasons of commercial sensitivity, table 2.5 in 바카라사이트 Autumn Statement did not specify a figure for lower repayments, however 바카라사이트se figures are fully consolidated into 바카라사이트 calculation of Public Sector Net Debt,¡± a spokesman said.

¡°The government has always been clear that selling 바카라사이트 student loan book would obviously reduce 바카라사이트 income received from repayments. Even when 바카라사이트 OBR¡¯s estimate of lower repayments are included, 바카라사이트 sale of loans more than finances 바카라사이트 cost of new, additional loans over 바카라사이트 scorecard period.¡±

But Dr McGettigan rejected that explanation, questioning why 바카라사이트 lost graduate repayments were deemed ¡°commercially sensitive¡± but 바카라사이트 loan sale proceeds were not. He said 바카라사이트 Treasury¡¯s calculations need ¡°urgent revision¡±.

john.morgan@tsleducation.com