Financial choices

I AGREE with much of George Kerevan’s article on the economy (Perspective, 27 July), but I believe it needs greater clarity.

By The Newsroom

Published 30th Jul 2012, 01:00 BST

The £18 billion of interest the Bank of England is paying to itself is in effect already being saved (credit rating agencies please note), but the saving is being used in ways not of Mr Kerevan’s choosing, eg possibly to reduce the deficit.

Cutting VAT and investing in construction would require further quantitative easing beyond the present £375bn, or alternatively raising taxes elsewhere as he suggested in a previous article.

Ian C Cowe

Newfields

Berwick-upon-Tweed

Bank of England VAT