Nigel Farage has reaffirmed his plan to scrap the interest payments the Bank of England currently pays to commercial banks on reserves built up during quantitative easing, saying the move is necessary to relieve pressure on public finances. Speaking at a Bloomberg event on the sidelines of the World Economic Forum, the Reform UK leader insisted the policy, which was included in the party’s 2024 manifesto, would be implemented despite strong opposition from the banking sector.
Farage described the payments as an unjust “drain on public finances,” and rejected the characterization of the policy as a tax. “They are just not going to get free money anymore,” he said, adding that some banks would be unhappy but that he had little sympathy for them after they “debanked” him. His comments echo warnings from the banking industry that the proposal could have “real consequences” for the economy if enacted.
When asked why bond investors appear wary of a potential Reform UK government, Farage argued that market anxiety often reflects a “big consensual view” and said he has long believed in taking the opposite position. He said his party’s programme would only win market support if it included significant spending cuts, particularly to welfare and “excessive government spending.” He also suggested that the pension triple lock, a long-standing commitment to boost pensions in line with inflation, could be revisited due to its cost.
Farage also addressed the Bank of England’s independence, saying he did not intend to challenge it directly but called for “a new, more innovative approach” to monetary policy. He said that if the country did not change course, it would become “poorer and poorer,” and hinted that a future Reform government would appoint officials with a different attitude. His remarks come shortly after Bank of England Governor Andrew Bailey warned that central banks and global institutions must “get our houses in order” to counter populist pressures.
The Reform UK leader also questioned the role of the Office for Budget Responsibility, criticizing its forecasting record and suggesting the body’s usefulness should be reassessed. He claimed his meeting with Bailey had been a “clash of cultures,” reflecting broader tensions between the government and the central bank over economic strategy.
In a wide-ranging interview, Farage also took aim at Canadian Prime Minister Mark Carney, who previously served as Bank of England governor and warned about the economic risks of Brexit. Farage mocked Carney as someone who “gets everything wrong” and has been “promoted.” Despite his earlier criticism of Davos as a gathering of unelected elites, Farage said he found the World Economic Forum meeting “really interesting and worthwhile,” noting a shift in the agenda from climate change and diversity debates to AI, technology, and energy, and praising the presence of more diverse opinions.
