HM Treasury Transparency Hub: Open Government Data

Purpose of This Hub

The UK monetary and public-finance system is complicated. Terms such as “printing money”, government spending, borrowing, debt, Quantitative Easing and money creation are often incorrectly treated as meaning the same thing.

This hub helps the public investigate the UK monetary system using original information from HM Treasury, the Bank of England, the Office for National Statistics, the Office for Budget Responsibility, Parliament, the National Audit Office and other official organisations.

Full Transparency and Accuracy Disclaimer

Right First Time UK is independent and is not affiliated with HM Treasury, the Bank of England, the UK Government, Parliament, the Office for Budget Responsibility, the Office for National Statistics, any political party, financial institution or organisation linked on this page.

The phrase “money printing” is commonly used in public discussion but can be misleading. Physical banknote production, central-bank reserve creation, commercial-bank lending, Quantitative Easing, government borrowing and government spending are separate processes.

This hub does not claim that the creation of money, government borrowing, Quantitative Easing, contracts, payments or meetings are evidence of wrongdoing. Financial figures should always be checked against the latest original source.

Key Facts to Understand

The Bank of England states that the total QE programme purchased £895 billion of bonds. The last increase in the QE target was announced in November 2020.

These figures should not be described simply as £895 billion of physical cash being printed and handed to government departments. QE involved the creation of central-bank reserves to purchase financial assets.

How Is Money Created?

1. Physical notes are issued through the central banking system.
2. Coins are issued under arrangements involving HM Treasury and the Royal Mint.
3. Commercial banks create deposit money when they make loans.
4. The Bank of England creates central-bank reserves.
5. Government raises money through taxation and other revenues.
6. Government can borrow by issuing government debt.
7. Quantitative Easing involves central-bank asset purchases financed by reserve creation.

Investigating Quantitative Easing

1. Identify each Monetary Policy Committee decision.
2. Check the announced increase in asset purchases.
3. Check what assets were purchased.
4. Check the Asset Purchase Facility accounts.
5. Check HM Treasury indemnities.
6. Check interest received on bonds.
7. Check transfers between the APF and Treasury.
8. Check losses and gains.
9. Check Quantitative Tightening.
10. Review independent evaluation and parliamentary scrutiny.

Investigating HM Treasury

1. Check who leads HM Treasury.
2. Check ministerial responsibilities.
3. Check senior officials.
4. Check departmental accounts.
5. Check Treasury spending.
6. Check contracts and procurement.
7. Check gifts, hospitality and meetings.
8. Check Treasury minutes and directions.
9. Check spending reviews.
10. Check Budget documents.

Investigating Government Spending

1. Check Total Managed Expenditure.
2. Check spending by government department.
3. Check spending by function.
4. Check day-to-day expenditure.
5. Check capital expenditure.
6. Check welfare spending.
7. Check NHS spending.
8. Check debt-interest expenditure.
9. Check contracts and suppliers.
10. Compare budgets with actual expenditure.

Investigating Government Debt and Borrowing

1. Check monthly public-sector finance statistics.
2. Check government borrowing.
3. Check public-sector net debt.
4. Check debt as a percentage of GDP.
5. Check debt-interest costs.
6. Check gilt issuance.
7. Check who holds government debt.
8. Check OBR forecasts.
9. Compare forecasts with actual outcomes.

Public Accountability

1. Read Treasury accounts and spending data.
2. Read Bank of England Monetary Policy Committee minutes.
3. Review Parliament debates and committee investigations.
4. Review National Audit Office reports.
5. Check ONS statistics.
6. Check OBR forecasts.
7. Search public contracts.
8. Use Freedom of Information requests where appropriate.

Follow the Money – Questions the Public Should Ask

• How much money does government receive each year?
• How much comes from taxation?
• How much comes from borrowing?
• How much does government spend?
• Which departments receive the most money?
• How much is spent on public services?
• How much is spent on welfare?
• How much is spent on debt interest?
• How much is spent on contracts?
• Which private companies receive public money?
• How much government debt exists?
• Who owns government debt?
• How much QE was carried out?
• Why was each QE expansion approved?
• What assets were purchased?
• What gains and losses arose from the APF?
• How much has HM Treasury paid to or received from the APF?
• What effect did QE have on inflation and asset prices?
• How much Quantitative Tightening has occurred?
• What independent scrutiny has taken place?

Suggested FOI Requests

• HM Treasury ministerial briefing papers.
• Records concerning major spending decisions.
• Business cases for major government programmes.
• Major programme risk registers.
• Consultancy expenditure.
• Government contract performance reports.
• Supplier KPIs.
• Contract penalties.
• Direct contract awards.
• Contract extensions and variations.
• Treasury meeting records with external organisations.
• Gifts and hospitality records.
• Ministerial correspondence concerning major financial decisions.
• Internal audits.
• Accounting Officer directions.
• Spending approval records.

How to Investigate Where Public Money Went

1. Identify the policy, department or programme.
2. Find the original Budget or Spending Review allocation.
3. Check the department's annual report and accounts.
4. Compare the original budget with actual expenditure.
5. Search Contracts Finder and Find a Tender.
6. Identify contractors and suppliers.
7. Check companies through Companies House.
8. Find the promised targets and KPIs.
9. Check whether the targets were achieved.
10. Search National Audit Office reports.
11. Search Public Accounts Committee investigations.
12. Search Hansard and written parliamentary questions.
13. Use FOI for unpublished recorded information.

Responsible Financial Transparency

• Do not describe all electronic money creation as physical money printing.
• Distinguish government spending from Bank of England monetary policy.
• Distinguish QE from direct government expenditure.
• Distinguish annual borrowing from total accumulated debt.
• Distinguish budget allocations from actual spending.
• Distinguish contract values from money actually paid.
• Use cash figures and inflation-adjusted figures carefully.
• State the financial year being discussed.
• Check whether figures cover the UK, central government or the whole public sector.
• Do not treat contracts or payments as evidence of wrongdoing.
• Use original official statistics wherever possible.
• Correct outdated financial figures promptly.