Treasury recruits Court quartet in Bank of England reshuffle | Economic news

The Treasury is to appoint a quartet of new directors to the governing body of the Bank of England as debate rages over the central bank’s remit under a new Tory Prime Minister.

Sky News has learned that Nadhim Zahawi, the Chancellor, has signed the appointments of four new members of the Court of the Bank of England, including former investment banker Lord Jitesh Gadhia.

Soumen Das, chief financial officer of industrial property group Segro and non-executive director of Next, and Sabine Chalmers, legal director of BT Group, are also expected to join the central bank’s board.

The other person named would be Tom Shropshire, general counsel and company secretary of Diageo, according to a source close to the process.

The reshuffle, which could be announced in the coming days, comes just weeks after former Nationwide chairman David Roberts was named the court’s next president.

Mr. Roberts will bring to the Court decades of financial services experience during one of the most crucial periods in the Bank’s recent history.

The appointment of members of the Court requires the approval of the Queen and the recommendation of Mr Zahawi and Boris Johnson, the outgoing Prime Minister.

Sources said the appointment of Dame Claire Moriarty, a former permanent secretary at the Department for Transport, was not advanced.

The Sunday Telegraph reported over the weekend that she was selected by Mr Zahawi for the Court job despite an apparent lack of economic experience, although an insider disputes this.

The quartet of new directors will arrive as Governor Andrew Bailey faces scrutiny over his handling of the inflation crisis which the Bank itself has warned could plunge Britain into a long recession.

Liz Truss, the Tory leadership favourite, has indicated she will review the Bank of England’s mandate to keep inflation below 2% if she takes over from Mr Johnson next month.

Other areas of tension between the Treasury and Threadneedle Street have also been on display in recent weeks.

Last month, Sky News revealed that Mr Bailey had expressed concern over the inclusion of power that would allow the Treasury to intervene in financial regulatory matters of national importance in upcoming legislation.

The Court is the governing body of the Bank of England and is responsible for setting its objectives and strategy, and for ensuring that the functions of the Bank are carried out efficiently and that the most effective use is of its resources.

However, it plays no role in the formulation of monetary policy.

Current members of the Court include Dorothy Thompson, the former chief executive of Drax, Baroness Harding, the former boss of TalkTalk, and Frances O’Grady, the general secretary of the TUC.

The Treasury declined to comment on Wednesday.

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