| |  | Our new report finds that the Financial Transaction Control Framework could help the government better manage its financial investments – but it requires full implementation to ensure these investments support stable public finances.
The government has announced an increase in the use of financial transactions (FTs), which include loans to businesses and equity investments, in pursuit of its policy goals. As at March 2024, its FT portfolio was valued at £203 billion.
It plans to spend £23.8 billion on FTs between 2025-26 and 2029-30, with investment directed to areas such as offshore wind and housing.
The Financial Transaction Control Framework aims to enhance how these investments are managed.
But it is a work in progress and needs to be fully implemented to ensure the government can invest in FTs in ways that reduce risks of destabilising public finances and increasing national debt. | | Read the report | |
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