Bank kept in the dark over budget statement

The governor of the Bank of England has said that the lack of communication from the Treasury ahead of September’s controversial mini budget statement made it an “extraordinary” and “abnormal” process.

Andrew Bailey told the House of Lords economic affairs committee that neither he, nor the bank, knew what was going to be in the controversial fiscal statement.

In particular, the absence of the usual economic forecast from the Office for Budget Responsibility made it difficult for the bank to prepare accordingly.

Mr Bailey told the committee: “The lack of clarity between the (then) prime minister and the chancellor about what was actually going to be in the statement, I think, illustrates the problem.

“In normal circumstances, we have channels of communication.

“It wasn’t happening in this case.”