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IPPR Proposes Bank Tax to Combat £22bn QE Losses

8/29/2025

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Summary

Story summary

The IPPR thinktank proposes a new bank tax and stopping bond sales to tackle the UK’s £22bn annual losses from quantitative easing (QE).
Associate director Carsten Jung states that QE primarily benefits banks, imposing a financial burden on taxpayers.
The Bank of England is reducing QE, but bond sale losses affect public finances.
Jung estimates a targeted bank levy could raise £8bn annually to support the economy.
The Bank of England emphasizes that tax decisions rest with the government, prioritizing inflation control.

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Story summary

The IPPR thinktank proposes a new bank tax and stopping bond sales to tackle the UK’s £22bn annual losses from quantitative easing (QE).
Associate director Carsten Jung states that QE primarily benefits banks, imposing a financial burden on taxpayers.
The Bank of England is reducing QE, but bond sale losses affect public finances.
Jung estimates a targeted bank levy could raise £8bn annually to support the economy.
The Bank of England emphasizes that tax decisions rest with the government, prioritizing inflation control.