Commons Sense

House of Commons · Written Ministerial Statement

Notification of Contingent Liability

11 November 2020 · Treasury

Proposed by Rishi Sunak Con Richmond and Northallerton

Economy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The Asset Purchase Facility (APF) limit is increased by 150 billion to 895 billion.
  • The Government will cover potential losses through normal supply procedures.
  • A detailed departmental Minute has been laid in the House of Commons.

Issue summary

The Treasury Minister Rishi Sunak is notifying Parliament about an increase in the Asset Purchase Facility (APF) limit by £150 billion to support the economy.

Action requested

I have authorised an expansion of the APF from £745 billion to £895 billion. The Government will continue to indemnify the Bank and the APF against potential losses, with any liability covered through normal supply procedures. A detailed departmental Minute has been laid in the House of Commons.

Key facts

  • Monetary Policy Committee (MPC) of the Bank of England decided on an expansion of the Asset Purchase Facility (APF).
  • The increase is up to £150 billion for further purchases of gilts.
  • The total size of the APF will be increased from £745 billion to £895 billion.
  • HM Treasury will continue monitoring risks through regular risk oversight meetings and enhanced information sharing with the Bank.
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