The Bank of England (Yui Mok/PA)
(Picture: PA Wire)AS we brace ourselves for what we’ve been told will be “tough decisions” in the weeks ahead as the Government attempts to plug the public spending gap, one measure is staring them in the face. At a stroke it could solve all our funding needs and avoid a great deal of pain elsewhere.
This is targeting the interest paid on large reserves held by commercial banks at the Bank of England overnight. Reducing or stopping the payments could raise tens of billions.
