The UK Government has given the green light to proposals to issue £25bn (€27.9bn) of gilts via syndication in the next year to supplement more traditional bond auctions, as part of a plan announced in today's annual Budget statement by Chancellor of the Exchequer Alistair Darling to raise a bigger than expected £220bn in gross supply.

Financial News reported in January that the UK Government bond market was set for its biggest overhaul in more than a decade as the Government considered options including syndicating debt issues rather than relying purely on the traditional auction approach, amid concerns the existing system would not be able to cater for the surge in gilt supply.