Perpetual and 100-year gilts branded 'a gimmick'

The government's plans to issue gilts with a maturity greater than 50 years, or even with a never-ending life, have been criticised as little more than a 'gimmick'.

Delivering the 2012 Budget, Chancellor George Osborne today unveiled plans to consult on launching long-dated gilts with a maturity well above the current maximum of 50 years. The Budget statement said: "In 2012-2013, the Debt Management Office (DMO) will consult on the case for issuance of gilts with maturities significantly longer than those currently in issue, that is in excess of 50 years, and/or perpetual gilts." The idea of 100-year gilts has already come under fire since it was leaked last week, with pension funds warning take-up of such bonds would be low. Today, John Walba...