Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will publish her Department's contingent liability database.

The government recognises the importance of monitoring and managing contingent liabilities, as these are fiscal obligations we need to ensure are consistent with the sustainability of the public finances. The government has taken steps to ensure this by publishing the Contingent Liability Approval Framework (CLAF) to provide a clear policy framework for approving and managing contingent liabilities, as well as establishing the Contingent Liability Central Capability (CLCC) within UK Government Investments (UKGI) to offer expert advisory support to departments to ensure contingent liabilities are priced and structured to get the best value for money results for taxpayers.

The Charter for Budget Responsibility, published alongside the Autumn Budget, commits the government to publish an annual report on central government’s material contingent liabilities, financial guarantees, insurance contracts, and provisions. The CLCC first published an annual comprehensive assessment of government exposure to contingent liabilities in November 2023 and will continue to do so annually, with the next report due by the end of the financial year. This level of transparency goes beyond accounting requirements to provide the public and parliament with detailed information on the government’s risk exposure.

In addition, as set out in Managing Public Money (MPM) government reports new contingent liabilities not taken on in the normal course of business, to parliament. Finally, to ensure transparency in line with the Government Financial Reporting Manual (FReM), departments disclose information on their contingent liabilities annually through their annual report and accounts, specifically within the Notes to the Accounts. These notes provide a clear explanation of the circumstances under which the liabilities may arise, estimated financial effects, and any uncertainties involved.