Skip to content 
Search

Latest Stories

Rishi Sunak accused of squandering £11bn of taxpayers’ money, here's why

The opposition Labour Party accused the government of ‘playing fast and loose' with the public finances

Rishi Sunak accused of squandering £11bn of taxpayers’ money, here's why

BRITAIN's oldest independent economic research firm has alleged that chancellor Rishi Sunak wasted £11 billion of taxpayers’ money by paying too much in interest on UK debt, according to a report. 

The national institute of economic and social research (NIESR) has said that the losses were the result of Sunak's failure to insure against interest rate rises on £900bn of reserves created through the quantitative easing (QE) programme, reported The Guardian.


It was also alleged that the losses exceeded the amount that the Conservatives have accused former chancellor Gordon Brown of losing when he sold some of the UK’s gold reserves at rock bottom prices.

Prof Jagjit Chadha, the institute’s director, said that Sunak’s actions had left the country with 'an enormous bill and heavy continuing exposure to interest rate risk.'

Responding to the report, the opposition Labour Party accused the government of 'playing fast and loose' with the public finances.

Meanwhile, the Treasury said that it had a “clear financing strategy” in place to meet the government’s funding needs.

The Financial Times earlier reported that the Bank of England (BoE) created £895bn of money through the QE programme, most of which was used to buy government bonds from pension funds and other investors.

When those investors put the proceeds in commercial bank deposits at the BoE, the Bank had to pay interest at its official interest rate.

According to the report, the NIESR last year urged the government to insure the cost of servicing this debt against the risk of rising interest rates by converting it into government bonds with longer maturity. The official rate was just 0.1 per cent then.

The NIESR pointed out that Sunak’s failure to heed their advice had cost taxpayers £11bn.

Shadow treasury minister, Tulip Siddiq, said that the loss leaves working people picking up the cheque for Sunak's severe wastefulness while he hikes their taxes in the middle of a cost-of-living crisis.

A Treasury spokesperson told The Guardian, “There are longstanding arrangements around the asset purchase facility – to date, £120bn has been transferred to HM Treasury and used to reduce our debt, but we have always been aware that at some point the direction of those payments may need to reverse.

“It is for the monetary policy committee to take decisions on quantitative easing operations to meet the objectives in their remit, and we remain fully committed to their independence.”

More For You

Southport

Floral tributes left by members of the public are seen following the fatal knife attack on three young girls in July in Southport.

Reuters

Public inquiry begins into Southport girls' murders

A PUBLIC inquiry begins on Tuesday into the murders of three young girls at a Taylor Swift-themed dance event in Southport last year.

The inquiry will examine whether the attack could have been prevented and how future incidents might be avoided.

Keep ReadingShow less
Starmer-Getty

Starmer is facing a Labour backbench revolt over plans to reform special needs support in schools without guaranteeing existing legal rights. (Photo: Getty Images)

Getty Images)

Starmer faces Labour pushback over SEND reform plans

KEIR STARMER is facing a backlash from Labour MPs over plans to reform special educational needs and disabilities (SEND) support, after ministers stopped short of guaranteeing legal rights for parents.

Education Secretary Bridget Phillipson said the government was committed to reforming the current system, which costs £12 billion a year. However, she did not confirm if legally enforceable rights, such as those provided by education, health and care plans (EHCPs), would remain.

Keep ReadingShow less
Heavy rain and thunderstorms hit London

Londoners faced a wet and stormy start to the week

iStock

Heavy rain and thunderstorms hit London before 30°C heatwave

Key points

  • Heavy rain and thunderstorms drench London at the start of the week
  • Temperatures set to rise with highs of 31°C expected by Thursday
  • Heatwave could be declared by Friday if warm conditions persist
  • Night-time temperatures to remain high, increasing discomfort
  • UV and pollen levels forecast to be very high across the south

Thunderstorms soak London before summer heat returns

Londoners faced a wet and stormy start to the week as heavy rain and overnight thunderstorms swept through the capital. Monday morning saw widespread downpours, leaving commuters reaching for umbrellas and Wimbledon ticket hopefuls queuing in ponchos.

The unsettled conditions followed a burst of thunderstorms on Sunday afternoon and continued into the early hours of Monday, prompting caution across the city. The Met Office has not issued a formal weather warning for thunderstorms, but conditions remain unstable.

Keep ReadingShow less
National Trust sets vision to heal
nature and engage more Asians

Lisa Nandy, Steve Reed, René Olivieri and Hilary McGrady at a National Trust event marking its 130th anniversary

National Trust sets vision to heal nature and engage more Asians

THE National Trust, which is seeking to broaden its appeal to British Asians, is marking its 130th anniversary with a renewed commitment to restoring nature and widening access under a 10-year strategy.

Its director-general, Hilary McGrady, also aims to inspire more people to get involved in caring for the country’s natural resources.

Keep ReadingShow less
 7/7 bombings

The King said the public should draw on the 'extraordinary courage and compassion' shown in response to the attacks. (Photo credit: X/@RoyalFamily)

Starmer and King Charles pay tribute on 20th anniversary of 7/7 bombings

PRIME MINISTER Keir Starmer and King Charles on Monday paid tribute to the unity shown in the aftermath of the 7 July bombings in London, as the country marked 20 years since the attacks.

On 7 July 2005, four Islamist extremists carried out suicide bombings at Aldgate Station, Edgware Road, King's Cross and Tavistock Square. The attacks killed 52 people and injured hundreds more.

Keep ReadingShow less