The Liberal Democrats have stepped forward to defend Bank independence, pushing back against Nigel Farage’s criticism of the Bank of England’s current policies. Party leader Sir Ed Davey and his deputy Daisy Cooper met Governor Andrew Bailey in London to express full support for the central bank’s autonomy.
Therefore, the meeting came after Farage urged the Bank to end its bond-selling programme, known as quantitative tightening. He argued the move was costing taxpayers billions and driving national debt higher. However, the Liberal Democrats insist maintaining Bank independence is crucial for financial stability and public confidence.
Sir Ed Davey accused Farage of trying to copy tactics used by Donald Trump in the United States. He warned that political pressure on the central bank could lead to chaos in the British economy. “We cannot let Trump’s America become Farage’s Britain,” he said after the meeting.
Moreover, Daisy Cooper echoed his remarks, stressing that the Bank’s independence remains vital for fair and stable economic management. She added that interference by politicians could undermine trust in the nation’s financial institutions.
Furthermore, the Liberal Democrat leader argued that while the Bank may need modernization, its autonomy is “the best way” to keep food and mortgage costs under control. Sir Ed linked his stance to the party’s wider goal of protecting democratic and institutional independence.
Farage and his Reform UK deputy Richard Tice had earlier met Andrew Bailey to press for changes. They claimed the Bank’s policies amounted to a “misuse of taxpayers’ money.” Tice argued that the bond sales have increased long-term government debt costs, now at their highest in nearly three decades.
Despite the criticism, the Bank remains focused on gradually reducing the massive bond portfolio built up since the 2008 financial crisis. This process follows years of quantitative easing, which saw the Bank inject money into the economy to maintain low interest rates.
The Liberal Democrats say they will continue to defend Bank independence against political attacks. They view it as essential to maintaining economic balance, investor confidence, and long-term prosperity across the United Kingdom.
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