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Politics

UK Treasury Paid Too Much Interest Servicing Debt, FT Reports

  • Sunak didn’t insure against higher rates, think tank tells FT
  • Treasury tells newspaper it has ‘clear financing strategy’
Rishi Sunak 

Rishi Sunak 

Photographer: Hollie Adams/Bloomberg
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U.K. Chancellor of the Exchequer Rishi Sunak has been accused of paying too much interest servicing the government debt, the Financial Times reported, citing calculations by the National Institute of Economic and Social Research.

The think tank estimated 11 billion pounds ($13.7 billion) has been lost from Sunak’s failure to take out insurance against interest rate rises a year ago on almost 900 billion pounds of reserves created by the Bank of England’s quantitative easing program, the newspaper said.