Question to the HM Treasury:

To ask Her Majesty's Government what estimate they have made of the cost to the Exchequer of the Bank of England raising interest rates by one per cent, in order to meet the Government’s commitment under the Asset Purchase Facility’s deed of indemnity.

At the 2021 Autumn Budget, the Office of Budget Responsibility estimated that a one percentage point increase in Bank Rate and short-term interest rates at the beginning of 2022-23 would increase debt interest costs by £9.1bn in 2026/27, the final year of the forecast. This includes the impact via the Asset Purchase Facility as well as other short-term liabilities such as Treasury bills.