Review of the cash ratio deposit scheme: consultation on proposed changes

The costs of funding the Bank of England's policy costs should be widened to include large firms in other FS sectors such as insurers.  We support the introduction of a levy but are concerned that the BoE's policy costs always seem to be on an upward trajectory.

We recognise the need for an adequately-resourced central bank with funding for those functions that are not already covered by separate levies or income generation. But the current debate about the exact funding mechanism should not obscure the more important principle that these resources should be wisely spent and give value for money. The fact that this funding will come from deposit takers rather than the taxpayer does not make it a “free good”.

Click here to read our response (note only certain consultation questions addressed).

For more information please contact Andrea Jeffries