‘Tax rises inevitable’ after Bank of England money-printing losses
The TelegraphTax rises are inevitable under the next government because of heavy losses created by the Bank of England’s money printing scheme, Goldman Sachs has warned. Higher borrowing costs are adding to the strain on Britain’s public finances which will force the next chancellor to raise taxes even further, James Moberly, an economist at the investment bank, said. Mr Moberly warned increased levies will be needed in part because of the scale of losses on the Bank of England’s quantitative easing programme known as the Asset Purchase Facility. In the past three decades, new governments of all stripes have tended to raise taxes after elections.” The Bank of England created money through the QE programme in the financial crisis, and again in the pandemic, to buy bonds, in an effort to ease strains in markets and to reduce borrowing costs for businesses and households.
History of this topic
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