Labour has accused the government of “catastrophic financial mismanagement” and claimed it has “lost” £251bn from the value of assets created to rescue the banking sector after the 2008 financial crash.
The party said analysis of recently published figures showed that a decline in the value of the Bank of England’s assets – over which the Treasury acts as a guarantor – was a huge loss to taxpayers, “equivalent to 10% of gross domestic product (GDP) in 2022, or the entire GDP of Scotland and Wales combined”.
In a report assessing the impact on the exchequer, Labour said the problem began when Rishi Sunak was chancellor in 2020 and worsened in the aftermath of former chancellor Kwasi Kwarteng’s disastrous mini-budget in September last year.
They mean that golts are worth less than when they were bought because interest rates have risen. Well, OK – but that’s the price of just printing money to spend. Don’t print the money and you’ll not make the loss.
This does also mean that Labour thinks there should have been more austerity….