What could the Bank of England do to support the UK economy?

The Bank of England could make our lives a lot better by changing some of its policies, but it shows no sign of doing so. Why then do we tolerate its supposed independence when that is used to undermine our well-being?

#uk #money #economy #politics #government #tax #labour #starmer #keirstarmer #old #health #life

ABOUT RICHARD MURPHY
Richard Murphy is Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best known book is ‘The Joy of Tax’.

This video was edited by Thomas Murphy.

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[battybibliophile-Clare]

I totally agree, well said, clear and well explained. As a former accounts department manager, I think I understand the economy better than Rachel Reeves, but have never claimed to be other than I was.

[SiSlade]

Had to watch that twice for it to sink in and I have a degree in economics. Admittedly it was a long time ago and I’m guessing economics degrees are far more about mathematical modelling now. I still suspect however that this video would fly in the face of everything more recently trained economists have been taught and that they, including Rachel Reeves, would not be able to grasp the power contained within it. Why? Because it would be embarrassing. It would undermine everything they have spent decades promulgating. It would require a change in mindset. It would threaten the established order. And finally, it would require rejecting the past 50 years of neoliberal ideology and the prioritisation of the interests of the many over the few.

[maliali]

BOE never been on the ordinary people side. Remember when ANDREW Bailey asked the businesses " don't give pay rise to the employees". For BOE it ok if the prices goes up but it is unacceptable if the wages goes up.

[fabfran]

Just shows the BOE is working for the economy, as an abstract entity, rather than the people.

[R_I_O_T_]

I'm no economist but I would think if you want growth you need to pay people a decent living wage and give them some time to spend their money. Create jobs rebuilding and repairing our crumbling infrastructure, more heath and social care (clinical not office) staff, investing in alternative energy like hydrogen wind and solar, retro fitting insulation in homes, encouraging people into teaching and teach science, maths and IT, cleaning up the environment, rewinding, there is so much opportunity to think out of the box. The last thing we need is a 3rd runway at

[bruce_c_in_nz]

Hi Richard, from Auckland, NZ. I'm not sure you will ever get to read this. Just a general comment from me, British ex pat for half a century, to say I very much enjoy your YT content, which I find very clear, concise and educational etc. I note from Wikipedia that you grew up in Ipswich, as did I.

[danburke]

Labour is doing a great job at putting reform in power.

[boralucifin]

Reeves really needs to bring in a wealth tax on the land an property owned by the super rich and use the funds gained on this to pull the poor up into the middle class. On top of that close the tax loopholes for non-doms.
Fix wealth inequality and reduce the concentration of wealth at the top. The country will sort itself out doing these 2 things alone.



Starmer should also be pushing for a Proportional representation to try and restore trust in politics.

[clivebroadhead]

The government could start the long promised West Yorkshire Metro to improve connectivity, reduce carbon emissions and promote the modal shift from road to rail.

[SeventhCircleID]

...it's about sustaining the conservative belief that it's 'our money', instead of 'the money the state has created', and convincing the UK population that the country is in reality bankrupt, and there's nothing that the state can do about their poverty, whilst the wealty laugh themselves all the way to the bank.

[heldenby]

Savers haven't had a true "inflation hedge" via bank savings accounts for almost 17 years.

[dratej]

I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love

[erongi]

Q.E.was to keep the banks afloat after their lending got out of control because of too much lending and too much greed. It is ironic now that the BoE pays the banks, whom they rescued, £30 billions a year interest on the selfsame Q.E.money they used to rescue them. You are right. The City rules. There is more money the tax payer pays in relation to Q.E.. Because interest rates have risen the value of the gilts held in the BoE reserves have fallen. This is a lot of money which has to be paid to the BoE to rescue them from their loss as they do QT.Around £100 Billions. Those gilts were originally purchased by the BoE with Q.E. money. QE to rescue the bankers was never free. We are now paying the huge cost of rescuing commercial banks 15 years ago. Meanwhile the stock market has boomed rescued by the QE money. The reality is completely outrageous.ABSOLUTELY outrageous

[Godzilla-kv]

I Hit $32, 590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week. i started with 5k in last week 2025... now i just hit $32, 590

[kurtleo]

The Bank of England can support the UK economy by adjusting interest rates to influence borrowing and inflation, using quantitative easing to inject liquidity, providing forward guidance for economic confidence, ensuring financial stability through regulations, and indirectly affecting the exchange rate, all aimed at balancing inflation control, economic growth, and financial stability.

[williamling]

The Bank of England runs the economy for the sake of Bankers alone. Make no mistake about that. Giving them control of interest rates was a massive mistake.

[MrDeltaHotel]

Fascinating observations Professor - Thank you for confirming exactly what many other expert economists say about the £20 BILLION of potential revenue from not paying interest on QE bonds:

This is exactly how REFORM UK plans to fully fund its flagship policy to raise the Income Tax Personal Allowance to £20, 000.

[inguzwulf]

8:54 Now this is something I'd really like to see. Sadly they are all in the pockets of The City bosses and I just can't see it happening. No one in a position of 'responsibility' in this country will take that responsibility (thus setting the example for the population as a whole, especially 'knife' wielding children - written as such because causes are never addressed: only symptoms) and thus the consequences are visited upon the less wealthy populace and not those above a certain 'pay-grade'. There is a truth in the phrase 'those above tread on those bellow' (although it might be more accurate in saying 'those above p$ss pn those below')!

Thank you, Mr Murphy, how I wish those in power would listen to you, too.

[CuriousCrow-mpcx]

Oh boy, could the Bank of England make life better. By reconsidering the cost to the economy of paying interest on Bank Reserves, which is more than £40bn a year that is being paid to banks to do something that they have to do by law already. Together with cuts to corporation tax pushes up the money being transferred to the banks by the state closer to £50bn a year, which is about 33% more than was being spent on Education (£37bn).

It's simply unsustainable. We have children living poverty going up year on year, but the State is financing bankers' bonuses, perhaps in an industry that is socially and perhaps economically dysfunctional. Why can't the banks stand in their own feet, and operate without subsidy? They used before 2006, and we never heard of bankers children suffering from diseases of deprivation then or now.

This policy began in 2006, and now nearly 20 years on, there is no sign of this stopping, but it's Unaffordable. Is this a protection racket? Or What?

[Morning]

first and yes they should but they don't because of corporate interests.