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

british-muslims-iStock

The study noted that this identification was not due to any doctrinal obligation but was influenced by the perception that many Muslims do not feel fully accepted as British. (Representational image: iStock)

iStock

Majority of British Muslims identify by faith first, study finds

A STUDY by the Institute for the Impact of Faith in Life (IIFL) has found that most British Muslims identify primarily with their religion rather than their nationality.

The research, based on a survey of 815 British Muslim adults by Whitestone Insight, revealed that 71 per cent of respondents identified as Muslim first, while 27 per cent identified as British, English, or Scottish first.

Keep ReadingShow less
Car Tax Changes: EV Owners Now Required to Pay for the First Time

Owners of electric vehicles registered on or after 1 April 2025 will pay £10 for the first year, followed by the standard VED rate of £195 from the second year. (Representational image: iStock)

iStock

Car tax changes take effect: EV owners to pay for first time

FROM today, 1 April 2025, electric cars, vans, and motorcycles in the UK will be subject to Vehicle Excise Duty (VED) for the first time.

The change, introduced in the 2022 Autumn Statement by former Conservative Chancellor Jeremy Hunt, aims to make motoring taxation fairer.

Keep ReadingShow less
scotland-minimum-wages-iStock

Full-time workers on the National Living Wage will receive an annual pay increase of £1,400 in real terms. (Representational image: iStock)

iStock

Wage increase takes effect for thousands of workers in Scotland

HUNDREDS of thousands of workers in Scotland will see a pay increase as new National Living Wage and National Minimum Wage rates take effect from Tuesday.

The changes will benefit approximately 220,000 people, according to STV News.

Keep ReadingShow less
uk-energy-bill-iStock

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased (Representational image: iStock)

iStock

April bill increases put financial strain on single parents

A RANGE of essential household bills are increasing from April, with Citizens Advice warning that single parents will be among the hardest hit.

Water bills, energy prices, and council tax are rising, while the minimum wage has also increased, BBC reported.

Keep ReadingShow less
Netflix drama Adolescence to be screened in UK schools
Stephen Graham and Owen Cooper in 'Adolescence'
Netflix

Netflix drama Adolescence to be screened in UK schools

THE NETFLIX drama Adolescence will be shown in UK secondary schools as part of efforts to address harmful online influences on young boys, officials announced on Monday.

The show has sparked debate over the impact of toxic and misogynistic content on the internet. Prime minister Keir Starmer met the show's creators, charities, and young people at Downing Street, calling the initiative an important step in starting discussions about the content teenagers are exposed to online.

Keep ReadingShow less