Tax & Spend
UK Taxpayers Take First Ever Loss From BOE QE Holdings
- Shortfall in September was £156 million, ONS figures show
- Treasury has earmarked £11 billion to cover hit this year
Outside the Bank of England (BOE) in the City of London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
The Bank of England’s mammoth government bond holdings were a drain on the UK’s public finances for the first time on record in September, explaining why the government has had to earmark £11 billion ($12.3 billion) of cash to transfer to the central bank this fiscal year.
The loss to taxpayers last month was £156 million, Office for National Statistics figures showed Friday. That came as interest payments on BOE’s holdings totaled £1.595 billion, more than the £1.439 billion received in coupon income.