Debt Management Office - Leeds
The UK Debt Management Office (DMO), was established on 1 April 1998. The DMO's brief is to carry out the Government's debt management policy of minimising financing costs over the long term, taking account of risk, and to manage the aggregate cash needs of the Exchequer in the most cost-effective way, in both cases consistently with the objectives of monetary and any wider policy considerations.
In institutional terms, the DMO is legally and constitutionally part of HM Treasury, but as an executive agency, it operates at arm's length from Ministers. The Chancellor of the Exchequer determines the policy and financial framework within which the DMO operates, but delegates to the Chief Executive operational decisions on debt and cash management, and day-to-day management of the office.
The separate responsibilities of the Chancellor and other Treasury Ministers, the Permanent Secretary to the Treasury, and the DMO's Chief Executive are set out in a published Framework Document, which also sets out the DMO's strategic objectives (below) and its Chief Executive's lines of accountability to Parliament for the DMO's performance and operations both in respect of its administrative expenditure and the Debt Management Account which records all its issuance and trading transactions. Each year the DMO is set a number of specific performance targets in respect of its objectives, its service to the market and its efficiency.
Strategic Objectives of the DMO
- To develop, provide advice on and implement HMG's debt management strategy.
- To develop, provide advice on and implement HMG's cash management requirement.
- To advise on the development and implementation of HMT's strategy for managing HMG's balance sheet to secure sound public finances.
- To develop and deliver its fund management responsibilities and, in particular, to provide a cost-effective service for stakeholders.
- To provide a cost-effective lending service to local authorities through the Public Works Loan Board.
- To resource, staff and manage the DMO efficiently and cost-effectively to ensure key responsibilities are achieved.
- To manage, operate and develop an appropriate risk and control framework.
- In addition to these objectives, the DMO seeks to support HMT Objective III "Promote efficient, stable and fair financial markets, for their users and the economy", and VII "Achieve world-class standards of financial management in government" respectively. The DMO intends to do this by supporting efficiency, stability, fairness and innovation in the financial markets and in working towards best domestic and international practice in the way that it delivers its objectives.