The Bank of England and Treasury are costing UK taxpayers eye-watering sums, quietly burning through over £85 billion with £130 billion more on the way.
No debate. No scrutiny. Just a stealth bailout of bad bond bets, and we’re footing the bill.
The Bank of England is offloading government bonds (gilts) bought during QE instead of holding them to maturity. With gilt prices down, every sale locks in a loss.
These losses will soon overtake annual debt interest payments, which are already nearing record highs.
These sales flood the market and drive yields up, raising the UK’s borrowing costs.
https://www.reuters.com/world/uk/bank-england-poised-slow-qt-after-rise-yields-2025-07-28/
Analysts estimate that simply letting bonds mature instead could save £10–13 billion per year.
Though framed as monetary policy, the Bank’s actions have major fiscal consequences. Losses are indemnified by the Treasury, meaning taxpayers cover the bill, with minimal parliamentary scrutiny.
https://www.thetimes.co.uk/article/bond-losses-could-force-rachel-reeves-to-cut-spending-jl53z5qsg
They call it monetary policy. What it looks like is economic vandalism rubber stamped in Westminster.
This deserves real scrutiny. Where is Parliament?
Image credit: @Dominic frisby
Public sector finances, UK - Office for National Statistics
How the relationship between UK public sector monthly income and expenditure leads to changes in deficit and debt.
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