Experts have urged the Treasury to bank the profits and ingeniously cut Britain's ballooning budget deficit. The surplus is to be found in the Asset Purchase Facility used by the Bank of England to buy government debt as part of its quantitative easing programme.

Because those bond prices have leapt amid fears of a double-dip recession, the £200bn facility has now generated around £15bn in capital appreciation as well as £15bn in profits. Although these are only paper profits – in other words they could evaporate if the value of the bonds fell – experts say the Government could lock them in and in so doing dramatically reduce the size of the deficit.

Simon Ward of Henderson Global Investors said that by closing down the facility and replacing the bonds with a Bank of England loan (at the Bank's benchmark rate, currently 0.5%), the Treasury would reduce its deficit this year by....Read more----> Asset Purchase Facility: Govt Makes £30bn Paper Profit Through Emergency QE Programme | Business | Sky News