Debt Management Office

UK Debt Management Office (DMO)

The UK Debt Management Office is an Executive Agency of Her Majesty's Treasury. The UK Debt Management Office (DMO) was established on 1 April 1998 and management of the gilt market was transferred from the Bank of England to the UK Debt Management Office. This re-organisation followed the transfer of operational responsibility for setting official UK interest rates from HM Treasury to the Bank of England in May 1997. A record of the key events in the development of the DMO since 2000 is contained in the DMO chronology. The UK Debt Management Office's remit is to carry out the Government's debt management policy of minimising financing costs over the long term, taking account of risk, and to minimise the cost of offsetting the Government's net cash flows over time, while operating in a risk appetite approved by Ministers in both cases.

The UK Debt Management Office’s responsibilities include debt and cash management for the UK Government, lending to local authorities and managing certain public sector funds such as:

Gilt Market
Gilts are marketable sterling government bonds issued by the UK Debt Management Office on behalf of the UK Government as part of its debt management responsibilities. They are issued to finance the borrowing requirement and to refinance maturing debt.

Money Markets
The UK Debt Management Office conducts its cash management operations in the sterling money markets by a combination of bilateral trades with counterparties and the issuance of Treasury bills, which are marketable sterling zero-coupon instruments.

Lending to local authorities
The Public Works Loan Board (PWLB) is a statutory body operating within the UK Debt Management Office and is responsible for lending money to local authorities and other prescribed bodies, as well as for collecting the repayments.

Managing public sector funds
The statutory functions of the Commissioners for the Reduction of the National Debt (CRND) are carried out in the UK Debt Management Office. The CRND’s main responsibility is the investment and management of government funds.

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