Why are we giving a £24bn-a-year subsidy to profitable commercial banks? | Letter
Guardian columnist Gerald Holtham argues that the UK government subsidises profitable commercial banks with a £24 billion annual payout. He calls for cutting the 3.75 % interest the Bank of England pays on banks’ reserves, claiming the subsidy is unnecessary and distorts competition. Holtham urges a review of the policy to reduce fiscal burden and promote fairer banking practices.