Bank under fire for ‘staggering’ spending

THE Bank of England spent more than half a million pounds on two parties and travel for two top policymakers over two years in a “disturbing echo” of the Westminster expenses scandal, it has emerged.

The annual summer party, traditionally hosted at a luxury sports club in Roehampton, west London, costs £100,000 each time. The bill for flights, hotels and other expenses for two top policymakers, Donald Kohn and Anil Kashyap, added up to £390,000 over the past two years.

For a similar period of time, travel for the Bank’s Governor, Mark Carney – who has a much more demanding schedule – cost £311,565.

The details emerged at a Treasury select committee hearing, where MP Simon Clarke demanded to know why the Bank spent the “simply staggering sum”.

He added that it must be “one hell of a party”. Mr Clarke said: “This is just unconscionable. I think of the culture that we [MPS in Westminster] had in this place and which was so rightly criticised in the 2009-10 period. There are disturbing echoes of that here at the Bank for me.”

He did not question the Governor’s expenses.

For two trips, the Bank spent £11,084 on Mr Kashyap’s travel. Nearly £500 was also spent on six separate taxi rides for Mr Kohn.

As members of the Financial Policy Committee, Mr Kohn and Mr Kashyap are paid an annual salary of just under £100,000 for working approximately two days a week.

While most of the FPC’S meetings are planned well ahead of time, some are conducted at relatively short notice, which may increase the cost of travel.

When quizzed on expenses and employee perks by the committee, Bradley Fried, the newly appointed Chair of Court, the Bank’s governing body, said that “our people fly business class”. The

Bank’s sports centre – at the same Roehampton venue where the summer party is held – boasts a Jacuzzi, sauna and, according to its website, “best in country” outdoor facilities. The annual membership cost for the public is £1,464. For a Bank employee it is just £50. There is also a discount for employees’ friends and family.

The summer party in 2016 included snooker, dodgems, face painting and a bouncy castle. The annual event is intended to be a morale booster for staff and there are no plans to scale it back, although it no longer features a highprofile cricket match, which was deemed too exclusive.

While it was important for such a vital institution to attract and retain top talent, Mr Clarke said it was hard to deem such perks “appropriate”.

Mr Fried said he would examine the committee’s concerns and report back to them on his findings.

The Bank of England, while operationally

independent, has had just one shareholder since 1946, the Treasury.

Of the Bank’s 4,261 staff, 880 are listed in its annual report as earning more than £80,000 each year. Forty earn more than the Prime Minister, who is paid a salary of £150,404.