Written question asked by Jonathan Reynolds (Labour) on Thursday, 3 March 2016, in the House of Commons. It was due for an answer on Monday, 7 March 2016. It was answered by Harriett Baldwin (Conservative) on Tuesday, 8 March 2016 on behalf of the Treasury.

Government Departments: Bank Services

Question: To ask Mr Chancellor of the Exchequer, which banks are permitted by his Department to hold government funds.

Answer: The vast majority of funds is held within the exchequer at the Government Banking Service. It is not held in commercial bank accounts. Public sector organisations require permission from HM Treasury and the Crown Commercial Representative for banking, currently the Head of the Government Banking Service, to open a commercial bank account. Public sector organisations should follow guidelines set out in the banking annex of “Managing Public Money”. The key points within these guidelines are that the balances held in commercial accounts should be minimised and the commercial bank providing the banking service needs to be a member of relevant UK clearing bodies.

Secondary information