Asked by: Lord Kinnock (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to paying interest on a proportion of reserve deposits made with the Bank of England by commercial banks and providing for any reduction in reserves to be paid out of the interest on that proportion, rather than the current arrangements in which interest is paid on the whole deposit and provided to the Bank by HM Treasury from public funds.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Bank Rate is the reference rate that commercial banks both receive on their reserve holdings and must pay to borrow additional reserves from the Bank of England. Remuneration of reserves at Bank Rate plays a role in the implementation of monetary policy and ensures commercial banks pass on changes in interest rates to household and businesses.
Data on payments to and from HM Treasury to the Asset Purchase Facility (APF) is made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data is available in worksheet PSA9B.
Time period | Interest receivable (£ million) | Interest payable (£ million) | Net interest receivable (£ million) | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MDD6 | MDD7 | MDD8 | MT6A | MF7A |
2021-22 | 17,990 | 1,859 | 16,131 | 7,218 | 0 |
2022-23 | 17,003 | 20,567 | -3,564 | 4,164 | 5,010 |
2023-24 | 15,403 | 39,748 | -24,345 | 0 | 44,549 |
2024-25 | 13,753 | 34,045 | -20,291 | 0 | 36,323 |
2025-26 | 11,802 | 23,596 | -11,793 | 0 | 16,660 |
These data refer to reserves backed only by bonds held in the Asset Purchase Facility (APF). A range of financial institutions hold reserve deposit accounts at the Bank of England and data on reserves held by commercial banks specifically is not publicly available. But the Bank of England does publish the aggregate level of outstanding reserves and the Bank Rate. As of 23 September 2026, total outstanding central bank sterling reserves were £642,336m.
The Monetary Policy Committee at the Bank of England are responsible for the conduct of monetary policy, and the separation of fiscal and monetary policy is essential to its effective delivery.
The UK’s approach of indemnifying the APF is in line with best practice as set out in a 2023 IMF working paper, relating to several areas of governance, accountability, and transparency. Other central banks do share both past Quantitative Easing-related profits and future losses with their national treasuries but do so, and account for doing so, in a variety of ways and over different time periods.
Asked by: Lord Kinnock (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government why the practice of using public funds from HM Treasury to pay the Bank of England to enable the Bank to pay interest to commercial banks on their reserve deposits is continuing in the UK, in the light of international comparisons with the EU, Swiss National Bank and US Federal Reserve Bank.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Bank Rate is the reference rate that commercial banks both receive on their reserve holdings and must pay to borrow additional reserves from the Bank of England. Remuneration of reserves at Bank Rate plays a role in the implementation of monetary policy and ensures commercial banks pass on changes in interest rates to household and businesses.
Data on payments to and from HM Treasury to the Asset Purchase Facility (APF) is made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data is available in worksheet PSA9B.
Time period | Interest receivable (£ million) | Interest payable (£ million) | Net interest receivable (£ million) | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MDD6 | MDD7 | MDD8 | MT6A | MF7A |
2021-22 | 17,990 | 1,859 | 16,131 | 7,218 | 0 |
2022-23 | 17,003 | 20,567 | -3,564 | 4,164 | 5,010 |
2023-24 | 15,403 | 39,748 | -24,345 | 0 | 44,549 |
2024-25 | 13,753 | 34,045 | -20,291 | 0 | 36,323 |
2025-26 | 11,802 | 23,596 | -11,793 | 0 | 16,660 |
These data refer to reserves backed only by bonds held in the Asset Purchase Facility (APF). A range of financial institutions hold reserve deposit accounts at the Bank of England and data on reserves held by commercial banks specifically is not publicly available. But the Bank of England does publish the aggregate level of outstanding reserves and the Bank Rate. As of 23 September 2026, total outstanding central bank sterling reserves were £642,336m.
The Monetary Policy Committee at the Bank of England are responsible for the conduct of monetary policy, and the separation of fiscal and monetary policy is essential to its effective delivery.
The UK’s approach of indemnifying the APF is in line with best practice as set out in a 2023 IMF working paper, relating to several areas of governance, accountability, and transparency. Other central banks do share both past Quantitative Easing-related profits and future losses with their national treasuries but do so, and account for doing so, in a variety of ways and over different time periods.
Asked by: Lord Kinnock (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what is the current total level of reserve deposits from commercial banks held by the Bank of England; and whether the interest paid by the Bank to commercial banks on those deposits is fixed at the Bank Rate by convention or another reason.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Bank Rate is the reference rate that commercial banks both receive on their reserve holdings and must pay to borrow additional reserves from the Bank of England. Remuneration of reserves at Bank Rate plays a role in the implementation of monetary policy and ensures commercial banks pass on changes in interest rates to household and businesses.
Data on payments to and from HM Treasury to the Asset Purchase Facility (APF) is made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data is available in worksheet PSA9B.
Time period | Interest receivable (£ million) | Interest payable (£ million) | Net interest receivable (£ million) | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MDD6 | MDD7 | MDD8 | MT6A | MF7A |
2021-22 | 17,990 | 1,859 | 16,131 | 7,218 | 0 |
2022-23 | 17,003 | 20,567 | -3,564 | 4,164 | 5,010 |
2023-24 | 15,403 | 39,748 | -24,345 | 0 | 44,549 |
2024-25 | 13,753 | 34,045 | -20,291 | 0 | 36,323 |
2025-26 | 11,802 | 23,596 | -11,793 | 0 | 16,660 |
These data refer to reserves backed only by bonds held in the Asset Purchase Facility (APF). A range of financial institutions hold reserve deposit accounts at the Bank of England and data on reserves held by commercial banks specifically is not publicly available. But the Bank of England does publish the aggregate level of outstanding reserves and the Bank Rate. As of 23 September 2026, total outstanding central bank sterling reserves were £642,336m.
The Monetary Policy Committee at the Bank of England are responsible for the conduct of monetary policy, and the separation of fiscal and monetary policy is essential to its effective delivery.
The UK’s approach of indemnifying the APF is in line with best practice as set out in a 2023 IMF working paper, relating to several areas of governance, accountability, and transparency. Other central banks do share both past Quantitative Easing-related profits and future losses with their national treasuries but do so, and account for doing so, in a variety of ways and over different time periods.
Asked by: Lord Kinnock (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what has been the cost in each year since 2021–22 of payments to the Bank of England by HM Treasury, to enable the Bank to pay interest to commercial banks on their reserve deposits with the Bank.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Bank Rate is the reference rate that commercial banks both receive on their reserve holdings and must pay to borrow additional reserves from the Bank of England. Remuneration of reserves at Bank Rate plays a role in the implementation of monetary policy and ensures commercial banks pass on changes in interest rates to household and businesses.
Data on payments to and from HM Treasury to the Asset Purchase Facility (APF) is made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication. The data is available in worksheet PSA9B.
Time period | Interest receivable (£ million) | Interest payable (£ million) | Net interest receivable (£ million) | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MDD6 | MDD7 | MDD8 | MT6A | MF7A |
2021-22 | 17,990 | 1,859 | 16,131 | 7,218 | 0 |
2022-23 | 17,003 | 20,567 | -3,564 | 4,164 | 5,010 |
2023-24 | 15,403 | 39,748 | -24,345 | 0 | 44,549 |
2024-25 | 13,753 | 34,045 | -20,291 | 0 | 36,323 |
2025-26 | 11,802 | 23,596 | -11,793 | 0 | 16,660 |
These data refer to reserves backed only by bonds held in the Asset Purchase Facility (APF). A range of financial institutions hold reserve deposit accounts at the Bank of England and data on reserves held by commercial banks specifically is not publicly available. But the Bank of England does publish the aggregate level of outstanding reserves and the Bank Rate. As of 23 September 2026, total outstanding central bank sterling reserves were £642,336m.
The Monetary Policy Committee at the Bank of England are responsible for the conduct of monetary policy, and the separation of fiscal and monetary policy is essential to its effective delivery.
The UK’s approach of indemnifying the APF is in line with best practice as set out in a 2023 IMF working paper, relating to several areas of governance, accountability, and transparency. Other central banks do share both past Quantitative Easing-related profits and future losses with their national treasuries but do so, and account for doing so, in a variety of ways and over different time periods.
Asked by: Lord Jamieson (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to amend the council tax surcharge (1) bands, (2) multipliers, and (3) thresholds, from those previously announced in November 2025.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, rather than routinely commenting on rumour, speculation or proposals.
Asked by: Shivani Raja (Conservative - Leicester East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HM Treasury is taking to support private-sector investment in productivity sectors and critical infrastructure in Leicester East.
Answered by Emma Reynolds - Chief Secretary to the Treasury
The Government's ambition is to support good growth across all parts of the United Kingdom. As set out in the Prime Minister's recent Machinery of Government Statement, No10 North will be responsible for driving good growth through devolution and working in close partnership with local leaders, businesses, and communities to strengthen place-based growth
We are also committed to fundamentally rewiring the way our country works, transferring greater powers, funding and accountability to the local leaders who know what it takes to drive growth and attract investment in their areas
As part of this we have provided support to Leicester through the Pride in Place fund, allowing neighbourhoods like Eyres Monsell, Braunstone Park West and Thurnby Lodge to decide where this is best spent, with each receiving £20m
This government has already taken first steps to tackle some of the barriers to private sector investment, including driving planning reform, removing the ban on the development of onshore wind farms, and expanding the Office for Investment. Regions across the UK benefit from British Business Bank's Nation and Regions Investment Funds, including the £400m Midlands Engine Investment Fund, which is still deploying capital.
Asked by: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they intend to tax state pensions.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
It has always been the case that pension income, from private pensions and the State Pension, is taxable. Under the previous Government, 8.3 million pensioners, the vast majority, paid income tax.
Asked by: Lord McCrea of Magherafelt and Cookstown (Democratic Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what measures they are taking to curb inflation and assist consumers.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
The independent Monetary Policy Committee of the Bank of England has primary responsibility for maintaining price stability and returning inflation sustainably to the 2% target. The Government primarily supports the Bank to control inflation through fiscal discipline, controlling borrowing and reducing long term pressures on our public finances. Last year, borrowing fell by 1ppt to its lowest level for six years at 4.2% GDP.
We know that people across the country are struggling with the cost of living and are worried about events in the Middle East and what that means for consumer prices in the UK. In March, the Government announced a £50 million support package for families struggling with high heating oil costs as a result of the conflict – with £17 million dedicated to consumers in Northern Ireland specifically. The Government has been working with the Northern Ireland Executive to ensure that protections are fit for purpose for Northern Irish households, who are particularly reliant on heating oil.
Since July, the Government has taken action to reduce energy bills by removing VAT from household electricity from October 1. This will take around £45 off the yearly Ofgem price cap in October, benefitting millions of households this winter. To ensure that households in Northern Ireland (NI) receive the same support as quickly as the rest of the UK, the NI Executive will receive comparable funding to enable it to support NI Households with the cost of living. The VAT cut on domestic electricity comes on top of the £150 removed from bills at the last Budget, when the OBR estimated that Government policy at Budget 2025 would bring down inflation by 0.4ppt in 2026-27. The 5p cut and freeze to fuel duty has also been extended to the end of the year.
The Government is monitoring the situation in the Middle East carefully. We are committed to helping people across the UK and providing breathing space with everyday costs.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the cost to the Treasury of the Bank of England's quantitative tightening policies since 2022 in terms of the impact of reimbursed losses on the fiscal deficit and the increased cost of servicing government debt.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Since October 2022, HM Treasury has transferred £110.72bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication.
Time period | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MT6A | MF7A |
2021-22 | 7,218 | 0 |
2022-23 | 4,164 | 5,010 |
2023-24 | 0 | 44,549 |
2024-25 | 0 | 36,323 |
2025-26 | 0 | 16,660 |
The Office for Budget Responsibility (OBR) forecasts the fiscal impact of quantitative tightening, including for the next three years, as part of the fiscal forecasts in its Economic and Fiscal Outlook. This was last updated in March 2026 (see table below), and the next scheduled update will be published on 28 October 2026.
Time period | Forecasted cash transfers from HM Treasury total (£ million) |
2026-27 | 15,500 |
2027-28 | 18,400 |
2028-29 | 20,800 |
2029-30 | 18,200 |
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the cost of the Bank of England's quantitative tightening to the Treasury in the next three years, in terms of reimbursed losses.
Answered by Lord Pitt-Watson - Parliamentary Secretary (HM Treasury)
Since October 2022, HM Treasury has transferred £110.72bn to the Bank of England to cover losses arising from the indemnity of the Asset Purchase Facility, the vehicle used to implement quantitative easing. This covers losses incurred from net interest costs and the sale and redemption of bonds as the portfolio is unwound.
Data on these cash transfers between HM Treasury and the Bank of England are made publicly available by the Office for National Statistics (ONS) in its monthly Public Sector Finances publication.
Time period | Cash transfers to HM Treasury total (£ million) | Cash transfers from HM Treasury total (£ million) |
Dataset identifier code | MT6A | MF7A |
2021-22 | 7,218 | 0 |
2022-23 | 4,164 | 5,010 |
2023-24 | 0 | 44,549 |
2024-25 | 0 | 36,323 |
2025-26 | 0 | 16,660 |
The Office for Budget Responsibility (OBR) forecasts the fiscal impact of quantitative tightening, including for the next three years, as part of the fiscal forecasts in its Economic and Fiscal Outlook. This was last updated in March 2026 (see table below), and the next scheduled update will be published on 28 October 2026.
Time period | Forecasted cash transfers from HM Treasury total (£ million) |
2026-27 | 15,500 |
2027-28 | 18,400 |
2028-29 | 20,800 |
2029-30 | 18,200 |