Question to the HM Treasury:

To ask His Majesty's Government what amount of interest has been paid to commercial banks on central bank reserves in each of the last ten years; and whether they have considered ending such payments.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Data on the interest paid on central bank reserves backed by bonds held in the Asset Purchase Facility is made publicly available by the Office for National Statistics in its monthly Public Sector Finances publication.

These data refer to reserves backed only by bonds held in the Asset Purchase Facility. While data on total interest paid is not available, the Bank of England does publish the aggregate level of outstanding reserves and the Bank Rate.

Paying interest on reserves is an important part of the transmission of monetary policy to the real economy and there are no plans to change the way reserves are remunerated at the Bank of England.

Question to the HM Treasury:

To ask His Majesty's Government what amounts associated with the Bank of England Asset Purchase Facility are included in the cumulative government debt; and whether they plan to exclude them from the total.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Information on the contribution to debt from the Bank of England and Asset Purchase Facility are routinely published in the monthly Public Sector Finances statistical release. The latest release, published by the Office for National Statistics on 20th March, showed that the impact on government debt from Asset Purchase Facility gilt holdings was £85.1 billion at the end of February 2026.

The Government's fiscal rules target net financial debt (Public sector net financial liabilities), to prioritise investment to drive long-term growth while getting debt falling as a share of the economy. Net financial debt includes the Bank of England’s balance sheet activities, including the Asset Purchase Facility.

Question to the HM Treasury:

To ask His Majesty's Government what plans they have to revise regulation of shadow banks following the collapse of Market Financial Solutions.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Treasury continues to work closely with the Bank of England and the regulators to monitor and respond to developments in the non-bank financial sector. The Treasury keeps the regulatory framework under review and is closely engaged in international work to understand and mitigate financial stability risks in respect of non-banks, including at the Financial Stability Board and G7.