Bank of England set to incur £150bn loss from bond sales after interest rate rises

Bill will need to be paid by the Treasury from current spending, hitting Whitehall departmental budgets

Higher interest rates will force the Bank of England to make a loss of 150bn from the sale of bonds bought to shore up the UK's financial system over the last 14 years - an increase from a 100bn deficit projected in April.

The bill will need to be paid by the Treasury out of current spending, hitting Whitehall departmental budgets, after successive chancellors failed to set aside funds to cover the losses.