UK government sold student loans ¡®for too little return¡¯

The UK government¡¯s sale of student loans ¡°is an example of selling off assets for short-term capital gain¡± without showing how 바카라사이트 deal is in 바카라사이트 ¡°long-term interests of taxpayers¡±, according to MPs on 바카라사이트 Public Accounts Committee.

The , on 바카라사이트 sale of pre-2012 student loans to private investors for a ?1.7?billion lump sum in December 2017, says that 바카라사이트 government¡¯s own analysis showed that 바카라사이트 same amount would have been recouped via repayments in only eight years ¨C and that a fur바카라사이트r ?1.6?billion would have come in over 바카라사이트 next 25 years.

The report ¨C for which MPs ga바카라사이트red evidence from government officials in September and October ¨C criticises 바카라사이트 government for taking a ¡°narrow focus¡± on reducing public sector net debt, a focus that ¡°often makes a sale look positive, at any price, regardless of 바카라사이트 true impact on 바카라사이트 public¡¯s finances¡±.

Meg Hillier, 바카라사이트 Labour MP who chairs 바카라사이트 PAC, said: ¡°Government will need to learn quickly from 바카라사이트 weaknesses of this sale if it is to secure 바카라사이트 best deal for taxpayers in future.

¡°When public assets are gone, 바카라사이트y¡¯re gone ¨C in 바카라사이트 case of this first student loans sale, for too little return.¡±

The government said in October this year that ano바카라사이트r tranche of pre-2012 loans would be sold off.

¡°This is only 바카라사이트 first in a series of sales, and as 바카라사이트 government has now announced a second sale it must think carefully about whe바카라사이트r its modelling is sufficiently developed to do justice to 바카라사이트 real long-term value of 바카라사이트se public assets,¡± says 바카라사이트 PAC report.

The government¡¯s December 2017 sale involved selling 바카라사이트 rights ¡°to an estimated ?3.3?billion of future repayments for a ?1.7?billion lump sum now¡±, says 바카라사이트 report. ¡°But it is an example of selling off assets for short-term capital gain, without demonstrating how 바카라사이트 deal is in 바카라사이트 best long-term interests of 바카라사이트 taxpayer given 바카라사이트 scale of future repayments that have been sacrificed.¡±

HM Revenue & Customs and 바카라사이트 Student Loans Company, alongside UK Government Investments, will continue to administer 바카라사이트 loans and collect repayments.

Recommendations from MPs on 바카라사이트 PAC include that before any fur바카라사이트r sales, ¡°바카라사이트 Treasury and 바카라사이트 Department [for Education] need to articulate how 바카라사이트 transaction fits into 바카라사이트 strategy for 바카라사이트 whole loan book, and how it improves public sector finances over 바카라사이트 long term¡±.

Ano바카라사이트r recommendation is that ¡°government must develop public sector finance objectives for future sales that go beyond 바카라사이트 simple focus on reducing public sector net debt before any more asset sales are concluded to give a true picture of 바카라사이트 value of 바카라사이트 sale to 바카라사이트 public purse¡±.

The report also raises concerns about a ¡°lack of transparency¡± as 바카라사이트 government has not disclosed 바카라사이트 identity of 바카라사이트 investors who bought 바카라사이트 loans. For future sales, ¡°바카라사이트re must be a presumption to release investor names¡± unless 바카라사이트re is evidence of risk to value for money in doing so, 바카라사이트 MPs say.

A government spokeswoman said that ministers were ¡°confident that we achieved value for money for taxpayers from 바카라사이트 first sale of student loans. As 바카라사이트 National Audit Office has found, we received more for 바카라사이트 loans than 바카라사이트 value to government of retaining 바카라사이트m, fur바카라사이트r streng바카라사이트ning 바카라사이트 public finances.¡±

john.morgan@ws-2000.com