The Bank of England plans to stop selling long‑dated gilts — specifically 20‑
and 30‑year paper accumulated during the financial crisis. Economists estimate
gilt disposals since 2022 have cost taxpayers about £22bn; pausing sales until
the end of the decade would save roughly £2.5bn a year versus continuing current
disposals and could avoid tens of billions in losses. The decision comes as a
global bond sell‑off and higher borrowing costs have heightened pressure on the
new chancellor ahead of a first budget on Oct. 28; pausing sales would free up
room to ease cost‑of‑living measures but would complicate meeting fiscal rules
that require day‑to‑day balance.
