Information Rights Unit
1 Horse Guards Road
D E Allan
020 7270 5000
19 August 2020
Dear D E Allan
Freedom of Information Act 2000
Thank you for your enquiry of 26 July 2020, which we have considered under the terms of
the Freedom of Information Act 2000 (the FOI Act).
You asked for the following information:
“The treasury claim to wholly own the Bank of England ..." the day to day issuing
and circulation of banknotes are the responsibilities of the Bank of England. " If the
bank of England is wholly owned by the treasury then why in Gods name do you
charge yourself interest on the money you create and the sovereign public which
have to pay this interest. This cash could easily be created interest-free.
In legal talk, the word "of "means without. It is the bank without England.”
Following a search of our records, we can confirm that HM Treasury does hold information
within the scope of your request.
The information you have requested is already in the public domain. Under section 21 of
the FOI Act, public authorities are not obliged to re-issue information where it is already
publicly accessible. To be helpful, links to the information are provided below along with a
Here is a link to the Bank of England’s 2018-19 annual report on official market
It explains why interest rates are paid. The Bank of England implements the Monetary
Policy Committee’s interest rate decisions by paying Bank Rate on reserves. This keeps
short-term market interest rates in line with Bank Rate. The Bank of England currently pays
Bank Rate on all reserves balances.
Here is a link to the Bank of England Asset Purchase Facility Fund Limited Annual Report
It explains how the interest paid on money created through quantitative easing is paid for.
If you have any queries about this letter, please contact us. Please quote the reference
number above in any future communications.
Information Rights Unit
Most documents HM Treasury supplies in response to a Freedom of Information request,
including this letter, continue to be protected by Crown copyright. This is because they will
have been produced by Government officials as part of their work. You are free to use
these documents for your information, for any non-commercial research you may be doing
and for news reporting. Any other re-use, for example commercial publication, will require
the permission of the copyright holder. Crown copyright is managed by The National
Archives and you can find details on the arrangements for re-using Crown copyright
material at: http://www.nationalarchives.gov.uk/information-management/re-using-public-
Your right to complain under the Freedom of Information Act 2000
If you are not happy with this reply, you can request a review by writing to HM Treasury,
Information Rights Unit, 1 Horse Guards Road, London SW1A 2HQ or by emailing us at the
address below. Any review request must be made within 40 working days of the date of
It would assist our review if you set out which aspects of the reply concern you and why
you are dissatisfied.
If you are not content with the outcome of the review, you may apply directly to the
Information Commissioner for a decision. Generally, the Commissioner will not make a
decision unless you have exhausted the complaints procedure provided by HM Treasury
which is outlined above.
The Information Commissioner can be contacted at: The Information Commissioner’s
Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF (or via their website at: