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UK Faces £20bn Annual QE Costs, Urgent Reforms Needed

9/15/2025

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Summary

Story summary

The UK anticipates over £20bn in annual costs from quantitative easing (QE) until 2030, complicating Rachel Reeves' efforts to stabilize public finances.
Initially, the Bank of England gained £120bn from QE but now faces losses due to rising interest rates and declining bond prices.
Projected losses for the Treasury could exceed £130bn by 2033, necessitating refunds to the Bank.
Richard Tice calls for an end to bond sales and reduced interest payments to banks.
Louise Haigh criticizes the current strategy, advocating for a careful unwind of QE without subsidizing banks at the expense of public investment and welfare.

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Story summary

The UK anticipates over £20bn in annual costs from quantitative easing (QE) until 2030, complicating Rachel Reeves' efforts to stabilize public finances.
Initially, the Bank of England gained £120bn from QE but now faces losses due to rising interest rates and declining bond prices.
Projected losses for the Treasury could exceed £130bn by 2033, necessitating refunds to the Bank.
Richard Tice calls for an end to bond sales and reduced interest payments to banks.
Louise Haigh criticizes the current strategy, advocating for a careful unwind of QE without subsidizing banks at the expense of public investment and welfare.