Treasury slow to act over long-term debt

1.12.33pm GMT Tue 28th Feb 2006

Responding to Gordon Brown's remarks today at the Euromoney bond investors conference in London concerning the issuance of longer dated debt, Liberal Democrat Shadow Chancellor, Vince Cable MP said: "Finally it appears that the Treasury has woken up to the markets request for longer dated debt. With regulatory changes forcing pension funds to invest in safer assets the Treasury should have been much quicker to recognise the increase in demand.

"An agile Treasury, supported by Ministers with some private sector expertise, would have spotted the very lucrative refinancing opportunity. With debt repayments of around £25bn per annum even a small re-financing could save British taxpayers from unnecessary tax rises.

"Time after time the Treasury either gets decisions wrong or is late to act simply because they just do not fully understand how markets work."