Network Rail nationalisation will impact borrowing rules

摘要

That Network Rail's reclassification as a central government body from September this year (RB1453 p1) represents a fundamental change was emphasised on April 23 when the Debt Management Office, an executive agency of the Treasury, revealed that NR would in future borrow from government. NR has until now raised funding on the money markets, with its borrowing backed by government under the Financial Indemnity Mechanism. Reclassification followed a review by the Office for National Statistics in the light of the revised European System of National Accounts 2010. According to the Memorandum of Understanding subsequently agreed by DfT and NR (RB1453 p9), the government, NR and ORR were to 'explore' whether 'alternative approaches to funding or refinements to the current system might prove more efficient'.