The government monitors very closely the levels of debt in the economy. With regards to general government debt, we recognise that sustained action is needed to tackle the long-term debt challenge. Identifying a specific numerical level of debt above which there are sustainability risks is difficult, but both parties within the coalition agree that once the Government’s supplementary debt target has been met, any future government will need to ensure that debt continues to fall as a percentage of GDP. The government does not have an explicit target for private sector debt or financial corporation debt, but the levels should not threaten financial stability. We are adamant that we will not repeat the mistakes of the past, and that is why we have created the independent Financial Policy Committee (FPC) within the Bank of England to ensure that emerging risks and vulnerabilities across the financial system as a whole are identified, monitored and effectively addressed.

The latest data from the OECD is available from 2012 and is presented below:

*Private sector is non-financial corporations and households

**Financial corporations is securities (other than shares and derivatives), plus loans

Notes:

The UK and other nations moved to the new European System of Accounts 2010 standard in September 2014 which mean that the GDP debt levels are not comparable with previous PQ answered by Lord Deighton on 7 July 2014 (HL686).

A liability (debt) for one sector is often an asset for another.

The Chancellor of the Exchequer, George Osborne, announced on 3 December that the Government will redeem 3½% War Loan, thus repaying the vast majority of the nation’s First World War debt. The Chancellor also announced that the Government will adopt a strategy to remove the other remaining undated gilts in the government’s debt portfolio, some of which have origins going back to the eighteenth century, where it is deemed value for money to do so.

This announcement followed the Government’s decision on 31 October to redeem the much smaller 4% Consolidated Loan, the first planned repayment of an undated gilt of this kind by government for 67 years. The Debt Management Office also announced on 17 December that 3½% Conversion Loan would be redeemed on 1 April 2015. After these redemptions, none of the £2.2bn worth of First World War debt currently in the government’s debt portfolio will remain.

The Treasury will redeem the outstanding £1.9 billion of debt from 3½% War Loan on Monday 9 March 2015, and the 4% Consolidated Loan will be redeemed on 1 February 2015.

The repayments on this debt will go to the holders of these bonds. The Treasury does not hold detailed information on the identity of organisations or individuals who own gilts, however information on sectoral holdings of gilts is published on a quarterly basis by the Office for National Statistics. The latest information on the breakdown of gilt holdings by sector, including a breakdown of non-UK resident holders of gilts by foreign central banks and other non-residents, is published by the ONS in Section 5.2.10 of its quarterly United Kingdom Economic Accounts publication.

We are only able to take this action today thanks to the difficult decisions that this government has taken to get a grip on the public finances. The fact that we will no longer have to pay the relatively high rate of interest on these gilts means that most important of all, this decision represents great value for money for the taxpayer.

At the end of World War I, debt was owed between the UK and other countries. However, in 1931 President Hoover of the United States proposed a one year moratorium on all War debts, which allowed extensive international discussions on the general problems of debt repayment to be held. No satisfactory agreement was reached. In the absence of such an agreement no payments have been made to, or received from, other nations since 1934.

The most recent repayment made by the UK on its debt to the US from the First World War was made in the financial year 1932-33. More specific information on the date of this payment is not available.

The UK included the First World War debt to the US as part of the National Debt up until 1944-45, however all First World War debts to and from other nations are now effectively considered as having lapsed. Therefore, as explained in the answer to the original question, no arrangements have been made for repayment of the debt.

In addition, the government holds eight undated gilts in its debt portfolio, three of which stem from bonds originally issued to raise money to finance the First World War.

The Chancellor has announced that two of these undated gilts, 4% Consolidated Loan and 3½% War Loan, will be redeemed, on 1 February 2015 and 9 March 2015 respectively. These gilts account for some 99% of the bonds originally issued to finance the First World War. The government has also announced a strategy to remove the remaining undated gilts from the debt portfolio when it is deemed value for money to do so.

The repayments on this debt will go to the holders of these bonds. The Treasury does not hold detailed information on the identity of organisations or individuals who own gilts, however information on sectoral holdings of gilts is published on a quarterly basis by the Office for National Statistics. The latest information on the breakdown of gilt holdings by sector, including a breakdown of non-UK resident holders of gilts by foreign central banks and other non-residents, is published by the ONS in Section 5.2.10 of its quarterly United Kingdom Economic Accounts publication.

At the end of World War I, debt was owed between the UK and other countries. However, in 1931 President Hoover of the United States proposed a one year moratorium on all War debts, which allowed extensive international discussions on the general problems of debt repayment to be held. No satisfactory agreement was reached. In the absence of such an agreement no payments have been made to, or received from, other nations since 1934.

The most recent repayment made by the UK on its debt to the US from the First World War was made in the financial year 1932-33. More specific information on the date of this payment is not available.

The UK included the First World War debt to the US as part of the National Debt up until 1944-45, however all First World War debts to and from other nations are now effectively considered as having lapsed. Therefore, as explained in the answer to the original question, no arrangements have been made for repayment of the debt.

In addition, the government holds eight undated gilts in its debt portfolio, three of which stem from bonds originally issued to raise money to finance the First World War.

The Chancellor has announced that two of these undated gilts, 4% Consolidated Loan and 3½% War Loan, will be redeemed, on 1 February 2015 and 9 March 2015 respectively. These gilts account for some 99% of the bonds originally issued to finance the First World War. The government has also announced a strategy to remove the remaining undated gilts from the debt portfolio when it is deemed value for money to do so.

The repayments on this debt will go to the holders of these bonds. The Treasury does not hold detailed information on the identity of organisations or individuals who own gilts, however information on sectoral holdings of gilts is published on a quarterly basis by the Office for National Statistics. The latest information on the breakdown of gilt holdings by sector, including a breakdown of non-UK resident holders of gilts by foreign central banks and other non-residents, is published by the ONS in Section 5.2.10 of its quarterly United Kingdom Economic Accounts publication.

At the end of World War I, debt was owed between the UK and other countries. However, in 1931 President Hoover of the United States proposed a one year moratorium on all War debts, which allowed extensive international discussions on the general problems of debt repayment to be held. No satisfactory agreement was reached. In the absence of such an agreement no payments have been made to, or received from, other nations since 1934.

The most recent repayment made by the UK on its debt to the US from the First World War was made in the financial year 1932-33. More specific information on the date of this payment is not available.

The UK included the First World War debt to the US as part of the National Debt up until 1944-45, however all First World War debts to and from other nations are now effectively considered as having lapsed. Therefore, as explained in the answer to the original question, no arrangements have been made for repayment of the debt.

In addition, the government holds eight undated gilts in its debt portfolio, three of which stem from bonds originally issued to raise money to finance the First World War.

The Chancellor has announced that two of these undated gilts, 4% Consolidated Loan and 3½% War Loan, will be redeemed, on 1 February 2015 and 9 March 2015 respectively. These gilts account for some 99% of the bonds originally issued to finance the First World War. The government has also announced a strategy to remove the remaining undated gilts from the debt portfolio when it is deemed value for money to do so.

The repayments on this debt will go to the holders of these bonds. The Treasury does not hold detailed information on the identity of organisations or individuals who own gilts, however information on sectoral holdings of gilts is published on a quarterly basis by the Office for National Statistics. The latest information on the breakdown of gilt holdings by sector, including a breakdown of non-UK resident holders of gilts by foreign central banks and other non-residents, is published by the ONS in Section 5.2.10 of its quarterly United Kingdom Economic Accounts publication.

At the end of the First World War, the debt owed to the United States by the United Kingdom amounted to around £850 million. Repayments of the debt were made between 1923 and 1931. In 1931, President Hoover of the United States proposed a one year moratorium on all war debts, which allowed extensive international discussions on the general problems of debt repayment to be held. However, no satisfactory agreement was reached. In the absence of such an agreement, no payments have been made to, or received from, other nations since 1934. At the time, the United Kingdom was owed more by other nations than the outstanding principal it owed the United States.

For this reason, liabilities and assets arising from WW1 have not been listed on the UK government’s balance sheet since 1944-45.

The Financial Conduct Authority has put in place binding requirements on fee-charging debt management firms to signpost customers to free independent debt advice at the first point of contact, including when contacted following a referral from a lead generator.

The FCA is monitoring the compliance of debt management firms with

its rules on an ongoing basis via its supervision of such firms and from 1 October 2014, all debt management firms are required to submit to the full scrutiny of the FCA authorisation process which will involve a comprehensive consideration of all aspects of their compliance.

The FCA is also undertaking an in-depth thematic review of the debt management sector to assess the quality of advice, looking at whether firms are recommending appropriate debt solutions, and how incentive structures and the use of lead generators may be affecting consumers.

The Financial Conduct Authority has put in place binding requirements on fee-charging debt management firms to signpost customers to free independent debt advice at the first point of contact, including when contacted following a referral from a lead generator.

The FCA is monitoring the compliance of debt management firms with

its rules on an ongoing basis via its supervision of such firms and from 1 October 2014, all debt management firms are required to submit to the full scrutiny of the FCA authorisation process which will involve a comprehensive consideration of all aspects of their compliance.

The FCA is also undertaking an in-depth thematic review of the debt management sector to assess the quality of advice, looking at whether firms are recommending appropriate debt solutions, and how incentive structures and the use of lead generators may be affecting consumers.

The Government has fundamentally reformed regulation of the consumer credit market, including the debt management industry, by transferring regulation from the Office of Fair Trading (OFT) to the Financial Conduct Authority (FCA) on 1 April 2014.

The Government welcomes the binding rules the FCA has placed on debt management firms, including new prudential and client money requirements to better protect consumers’ money.

Under the new regime the FCA has robust powers to protect borrowers – there is no limit to the fines which the FCA can levy and it can require firms to provide redress to consumers.

The FCA will thoroughly assess every debt management firm’s fitness to trade as part of the authorisation process. The debt management industry has been called forward first for authorisation, from this October.

Lead generators for debt management firms are not subject to regulation directly, but the FCA requires regulated debt management firms that accept leads from lead generators to satisfy themselves that the business has been procured fairly and in accordance with relevant legislation, including the requirements of the Data Protection Act and the Privacy and Electronic Communication Regulations. Debt management firms must ensure that lead generators calling on their behalf make clear the identity of the firm, and the purpose of the communication, so the consumer can decide whether to proceed. Additionally, at first contact with a customer, debt management firms must signpost consumers to the availability of ‘free’ debt advice. The FCA is able to impose sanctions on regulated debt management firms, such as imposing unlimited fines and ordering firms to pay money back to customers, where wrongdoing is found.

The aggregate value of general government, non-financial corporations and household sector debt (as a proportion of GDP) for all G7 countries are shown below:

The OBR publish figures for household debt, GDP and disposable income on their website alongside their Economic and Fiscal Outlook.

In 2010-11 total lending to households in the United Kingdom or debt liabilities was estimated to be £1.53 trillion in the National Accounts produced by the Office for National Statistics, this is equivalent to 102% of annual Gross Domestic Product and 152% of household disposable income in that year. In 2011-12 the figure was 1.53 trillion (99% and147% respectively), and in 2012-13 the figure was 1.54 trillion (98% and 143%). These data are not yet available for 2013-14. In their March 2014 Economic and fiscal outlook the Office for Budget Responsibility forecast these figures to be 1.66 trillion in 2014-15 (97% and 144% respectively).

Details of the attendees and issues discussed by the Technical Working Group (TWG) on Sudan's external debt are released by the IMF following each meeting. The UK attends as a member of the Paris Club delegation.

Information from the last TWG meeting, held on 12 October 2013, can be found on the IMF website at:

http://www.imf.org/external/np/sec/pr/2013/pr13404.htm

Discussions on the treatment of sovereign debt take place within the multilateral framework of the Paris Club. There have been no recent negotiations between the Paris Club and the government of Sudan.

A further meeting of the Sudan Technical Working Group on External Debt is expected to take place in the margins of the IMF/World Bank Spring Meetings in April.

Liabilities and assets arising from World War I have not been listed on the UK Government’s balance sheet since 1944-45. The Government of the United States has not raised the issue of World War I debt or interest with the UK Government in the last three years.

The Office for National Statistics (ONS) is responsible for estimates of United Kingdom private sector gross debt, which they publish on a quarterly basis. In the first quarter of 2013, private sector gross debt stood at £27.1 trillion (1,722 per cent of GDP). In the first quarter of 2010, private sector gross debt was £25.9 trillion (1,805 per cent of GDP). The ONS July Public Sector Finances release showed public sector net debt stood at £1,193.4 billion (74.5 per cent of GDP) at the end of July this year. At the end of 2009-10, public sector net debt was £828.3 billion (56.4 per cent of GDP).

The UK economy is recovering from the most damaging financial crisis in generations after a decade of growth built on unsustainable debt. The Government remains committed to restoring debt to a sustainable, downward path. Although public sector net debt will continue to rise in the short term, in its March 2013 Economic and fiscal outlook, the Office for Budget Responsibility forecast that public sector net debt will fall as a share of GDP in 2017-18.

The Office for National Statistics (ONS) is responsible for estimates of debt in the private sector, these estimates are published quarterly.

The pre-crisis decade of growth was built on unsustainable levels of debt. It has been estimated that, by 2008, the UK private sector had become the most indebted in the world. Private sector debt fell by £53 billion or 43 percentage points of Gross Domestic Product between its peak in the first quarter of 2010 and the fourth quarter of 2012.

The independent Office for National Statistics (ONS) produces the UK National Accounts according to the European Commission’s legally binding framework: the European System of Accounts 1995. Under this framework, the ONS has classified Network Rail as a private, non-financial corporation, and its debt, therefore, cannot be considered to be government debt.

The Office for National Statistics (ONS) is responsible for estimates of United Kingdom debt, which it publishes on a quarterly basis. The following table shows estimates of public, corporate, household and total debt between the second quarter of 2009 and the third quarter of 2012 (the most recent quarter). Estimates are shown in both nominal terms and as a per cent of nominal gross domestic product (GDP) over the preceding four quarters.

Including non-profit institutions serving households