Government debt is generally held by the insurance and pension companies, wealthy individuals, foreign governments and institutions and the Bank of England.
What intrigues me is what would happen if the BofE and Government decided just to write off this debt owed by the government to the BofE?
Is it the same as say husband owing wife a chunk of money and wife telling her husband he doesn't need to pay her back? In this case as a couple they are no worse off and the debt is gone.
As the BofE hold around 30% of the national debt does this present a way to cover the estimated 300 billion needed to fund government COVID measures without any tax increases?