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  • iuy7
    Article: Jun 11, 2022

    Just when we thought that the huge amount of public money wasted by this Tory Government could not be matched, it transpires that the Chancellor of the Exchequer has outdone himself.

    The Guardian reports that Rishi Sunak has been accused of wasting £11bn of taxpayers' money by paying too much in interest servicing the government's debt.

    The paper says that according to the National Institute of Economic and Social Research (NIESR) the losses were the result of the chancellor's failure to insure against interest rate rises on £900bn of reserves created through the quantitative easing (QE) programme:

    The losses were said to exceed the amount that the Conservatives have accused former chancellor Gordon Brown of losing when he sold some of the UK's gold reserves at rock bottom prices.

    The institute's director, Prof Jagjit Chadha, told the Financial Times that Sunak's actions had left the country with "an enormous bill and heavy continuing exposure to interest rate risk".

    Labour said the losses were "astronomical" and accused the government of "playing fast and loose" with the public finances.

    In response, the Treasury said that it had a "clear financing strategy" in place to meet the government's funding needs.

    According to the FT report, the Bank of England (BoE) created £895bn of money through the Quantitative Easing programme, most of which was used to buy government bonds from pension funds and other investors.

    When those investors put the proceeds in commercial bank deposits at the BoE, the Bank had to pay interest at its official interest rate.

    Last year, when the official rate was still 0.1%, the NIESR urged the government to insure the cost of servicing this debt against the risk of rising interest rates by converting it into government bonds with longer maturity.

    Chadha said they had now calculated that Sunak's failure to heed their advice - despite having regularly warned about the risks of higher inflation and interest rates on the costs of servicing the government's debt - had cost taxpayers £11bn.

    Who says there's no magic money tree?

  • pp9
    Article: Jun 10, 2022

    The ongoing unpopularity of the Conservatives lead by Mr Johnson continues to offer opportunities in wider politics as is illustrated by this weeks result from a local council by-election in what has historically been a very safe Tory seat

    Penshurst, Fordcombe and Chiddingstone (Sevenoaks) council result:

  • 88ap
    Article: Jun 9, 2022

    A lot has been said about our Prime Ministers leadership style and his passing proximity to the truth in his promises

    It is true that he is in constant campaign mode but shy's away from the hard grind of putting in place the actions and plans to actually deliver the promises that he makes in his boosterish style

  • de44
    Article: Jun 7, 2022

    Well it was a lot closer than was generally expected with Mr Johnson retaining the confidence of his party ( if not the country!) by a vote of 211 to 148. With over 40% of the party voting against the Prime Minister he performed worse that Mrs May who was subject to a relentless campaign led by none other than our current Prime Minister to oust her over the Brexit deal

  • btea
    Article: Jun 7, 2022
    By Councillor Dave Busby

    Following on from the recent article on the power lines ( see To Sea or Not To Sea (Babergh South Suffolk Liberal Democrats) (southsuffolklibdems.org.uk)) and their under-the-sea alternative, the mass of energy infrastructure projects up for consideration at the moment throws up another dilemma. Should we be favouring food production or green energy generation?