King tells Osborne £37bn QE cash grab won't help UK

clock

Sir Mervyn King, the Bank of England's Governor, told the Chancellor that £37bn cash the Treasury claimed from the QE programme will not help the UK's finances.

As George Osborne readies for gloomy debt forecasts next week, Sir Mervyn King said it was "very clear" that any headline boost to the public finances from the Treasury's move would not help the "underlying" position - and signalled that it should not be presented to the public as doing so, the Daily Telegraph reports. "What I did make very clear to the Treasury was that I thought it had no impact at all on the long-run fiscal position and there was no benefit to the taxpayer of making this change," he told MPs. It was for the Treasury, rather than the Bank, to "face up to" concerns t...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

2025 investment trends: The updated reality in wealth management

2025 investment trends: The updated reality in wealth management

'The future of wealth management will lie in personalisation'

Julia Khandoshko
clock 16 January 2025 • 4 min read
UK inflation lowers to 2.5% in December

UK inflation lowers to 2.5% in December

Down from 2.6% in November

Sorin Dojan
clock 15 January 2025 • 2 min read
'It's a challenging time': Advisers react to record gilt yield rises

'It's a challenging time': Advisers react to record gilt yield rises

Clients worried about a weakening UK economy

Isabel Baxter
clock 13 January 2025 • 5 min read