Debt
Management
Office / Eastcheap Court
11 Philpot Lane
London EC3M 8UD
Tel. 0845 357 6552
Information Manager
Mr J-A: Houghton
address unknown
/ 7th March 2011
FOI20110226
FREEDOM OF INFORMATION REQUEST – ‘ACCEPTED FOR VALUE’
Dear Mr Houghton
I am writing in response to your Freedom of Information (FOI) request dated 23 February 2011. The UK Debt Management Office (DMO) has now completed its research for the information that you requested. Having consulted with appropriate colleagues, I am advised to respond as follows to each of your five requests in turn, but would first make the point that we believe there might be some confusion here between interpretations of ‘bills’ (ie. commonly used to describe invoices for goods or services (to be) provided), Bills of Exchange and/or Treasury Bills:
1) How much of the National debt was Paid/set off/cleared/or reduced by way of the Bills of exchange act 1882 'Acceptance' by signature in 2010?
The Bills of Exchange Act defines a bill of exchange as “unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at a fixed or determinable future time a sum certain in money to or to the order of a specified person, or to bearer”. The UK Government generally redeems/repays its outstanding liabilities (Gilts and Treasury Bills) by way of BACS payments, or, where an investor has specifically requested, by cheque. As such, the answer to your question is Zero.
2) Is the process of Acceptance for value in the Bills of exchange act 1882 a valid means of payment which will not increase the national debt?
No, the process of Acceptance has no impact on the National Debt.
3) Does Uniform Commercial Code law apply to the UK National Debt?
No. As far as we can ascertain, the Uniform Commercial Code is a feature of US law and has no effect on UK National Debt.
4) Is there anywhere either in your office, or an office which deals with debt in the public, a concise and step by step description of how a 'Debt' to a company in the public (e.g. gas bill, phone bill) should best be dealt with (Paid/set off/cleared/settled) if the reduction of the UK National Debt is your desired outcome and what is that process exactly?
Not at a national level. Of course, prompt settlement of any amounts owed to HM Government will help to minimise/reduce the national debt at any given time, but we feel it is worth pointing out here that the majority of gas, electricity, telephone and other utility companies are now privately-owned.
5) If this process were given a name it would be ‘Acceptance for Value’. Does the UK Debt management Office have a policy, or advice about, or informational pamphlets containing advice on, or any written information held in any form about ‘Acceptance for Value’?
No, no such information is held or published.
If the interpretation(s) we have used for your request is incorrect it would be helpful to us if you were able to add further clarity regarding the information sought, or if you have any queries about the response, please contact me in the first instance.
Yours sincerely,
Information Manager
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