Osborne to be pulled into Bank of England row

Tim Wallace
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CHANCELLOR George Osborne could have to face MPs to answer questions on the independence of the Bank of England’s new financial policy committee (FPC), City A.M. can reveal.

The influential Treasury Select Committee wants to get to the bottom of claims some of the external members of the FPC were appointed because the agree with the chancellor, not because they will provide independent expert advice.

Top FPC members Andy Haldane and Donald Kohn will appear before the TSC tomorrow in a reappointment hearing. It is likely they will be asked for their views on their own independence and that of the committee as a whole.

Although Treasury and Bank officials often come before the MPs as part of the process of accountability to parliament, there could also be extra hearings on this investigation.

As George Osborne is the minister responsible for the appointment of FPC members, that means he is likely to be called to give evidence or be required to give written statements to the inquiry.