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Written question asked by Baroness Altmann (Non-affiliated) on Tuesday, 15 September 2026, in the House of Lords. It was due for an answer on Tuesday, 29 September 2026. It was answered by Lord Pitt-Watson (Labour) on Thursday, 1 October 2026 on behalf of the Treasury.

Monetary Policy

Question

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.

Answer

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

Secondary information

Type
Written question
Reference
HL3516
Session
2026-27
Grouped for answer
Yes
Subjects
Monetary policy Public sector debt
Contains statistics
Yes
Link
View this Written question on www.parliament.uk