Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what estimate she has made of the potential saving to the Exchequer of moving to a two-tier system for reserve renumeration.

The Chancellor regularly meets with the Governor of the Bank of England to discuss matters relating to economy and the Bank’s progress towards meeting its price stability targets.

The government continues to support the Bank’s independence to carry out its statutory responsibilities for monetary policy and financial stability, and there are no plans to change the way reserves are remunerated at the Bank of England. The government is providing the stability required for the MPC to bring interest rates down, by managing the public finances responsibly.