The Bank of England plans to halt the sale of long-term government bonds: soaring borrowing costs could save the Chancellor billions of pounds.

(1) According to The Daily Telegraph, the Bank of England is preparing to stop selling long-term government bonds due to surging borrowing costs putting pressure on the Chancellor of the Exchequer. (2) According to the plan, the Bank of England will stop selling the 20-year and 30-year UK government bonds it accumulated during the financial crisis to stabilize the economy. (3) Economists believe that since 2022, selling these long-term debts has cost taxpayers £22 billion. (4) This move comes as a global bond sell-off adds pressure on the new Chancellor Healey ahead of his first budget on October 28. Taking a different approach could give Healey more room to ease the cost-of-living pressures. (5) Compared to continuing the current bond sales, stopping the sale of long-term bonds at a significant loss by the end of this decade is estimated to save £2.5 billion annually. (6) Although this could save the Chancellor billions of pounds, it would complicate efforts to achieve the fiscal rule of balancing day-to-day spending.