This paper proposes reforms to the UK Debt Management Office’s (DMO) financing remit to reduce Exchequer costs without austerity. It argues the current rigid, auction-based system is inefficient and misaligned with market demand, based on an outdated view of government finance. We recommend an Open Issue System (OIS), a dynamic, demand-driven model for the continuous issuance of gilts and Treasury bills in direct response to market bids. By phasing out Gilt-edged Market Maker privileges and broadening market access, the OIS would lower borrowing costs, reduce volatility, and enhance fiscal space. These significant reforms can be implemented administratively under existing statutory authority, offering a practical path to fiscal improvement.
Budget Submission – October 2025 – Full paper
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