NfkDumpling
Can you explain that further please*Dickens*? If money isn't a problem, its just more debt, and its all down to keeping inflation under control, how does that work? (Please keep it simple - I'm not very bright.)
... I'm sure you're just as "bright" as anyone else... I'm not that clever either, but have made a point of trying to understand how the economy works. And I also like it plain and simple.
The money spent on easing the struggles of people and businesses due to the Pandemic came from the Bank of England as a loan.
We used to borrow money from pension funds, wealthy individuals and foreign countries, but this new debt is being borrowed from the Bank of England which is, itself, a government institution, and is able and legally allowed to create its own money.
In simple terms, the government is borrowing money from itself, and doesn't have to worry about paying it back.
Technically, these loans have end dates - but these loans have
been happening since 2009. However, so far, when they reach maturity, the BoE has extended the loan, and not only extended it but have increased the loan amounts, and decreased the interest rates. It is, apparently, a known 'secret' by traders and economists that these loans will be extended indefinitely.
And because the government owns the BoE, it returns any profit made on interest back to the government.
The important thing is that the financial markets recognise that this debt will never be paid back, and will never have to be... it's new money, lent permanently to the government.
This doesn't mean there are no problems caused by this strategy... inflation, etc. But that's for another day.
This is really a very simplified explanation.