MPs go to war with Treasury over lack of scrutiny for all-powerful Bank

THE TREASURY will today face its last chance to strike a deal with angry MPs who have demanded fundamental changes to its flagship financial services bill.

In an unprecedented move, the Treasury Select Committee (TSC) has tabled an amendment that would force a vote on the government’s plans to give the Bank of England sweeping new powers without enough additional scrutiny.

“The concessions made so far by the Bank and the government on their behalf won’t satisfy parliament’s demands for more accountability for such a powerful institution,” said TSC chairman Andrew Tyrie.

Labour is backing the amendment, which MPs believe could attract enough support to persuade the Treasury to reopen negotiations rather than suffer a bruising vote that would store up trouble for the bill in the Lords.

The government has faced a chorus of criticism over plans to concentrate new powers over the cost of credit in the Bank, which presided over the 2008 crisis. Many MPs are also worried about the Bank’s concerted lobbying. The Treasury declined to comment.