HMT announces proposal for a new objective for the BoE
The UK Treasury has proposed a new secondary objective for the Bank of England to support innovation in payment systems and digital money. This mandate is subordinate to the Bank's primary goal of maintaining financial stability.
Why it matters
This policy shift signals the UK's intent to modernize its financial infrastructure and remain competitive in the global digital asset market while managing systemic risks.
On 27 August 2026, HM Treasury ( HMT ) announced that it intends to give the Bank of England ( BoE ) a new responsibility to support innovation in payment systems and emerging forms of digital money, whilst continuing to prioritise financial stability.
HMT sets out in its announcement that, at present, the BoE has a primary objective to protect and enhance UK financial stability and that the proposed new secondary innovation objective will be subordinate to this and will not require the Bank to support innovation if doing so would undermine financial stability.
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