Bank puts paid to ‘staggering’ staff expenses bill

‘You should also consider whether it is possible to travel at a different time to reduce costs’

THE Bank of England has told staff to buy cheaper dinners, use public transport and book economy flights, to clamp down on “staggering expenses”.

MPS criticised the Bank’s expenses bill earlier this year when it emerged more than half a million pounds was spent on travel for two senior officials and on staff parties from 2016 to 2018.

The new limits on staff spending will affect everyone from the Governor, Mark Carney, down to the newest recruit and include £40 a day for food when travelling. Employees will be allowed £12.50 for dinner when working more than 11 hours in a single day and until 8.15pm or later on Bank premises.

“Incidental expenses” such as tips for taxi drivers are allowed up to £5 per day in the UK or £10 overseas.

UK hotels should cost no more than £125 per night, or £200 in London. In Europe €200 (£180) is allowed, while North American hotels should cost no more than $275 (£218), or $325 in New York or Washington DC.

Economy flights are recommended, though business class will be allowed when travelling for more than six hours or overnight. “You should also con- sider whether it is possible to travel at a different time to reduce costs of travel,” the new policy states.

A significant amount of travel expenditure was incurred when policy meetings were called at short notice, meaning flights cannot be booked more cheaply in advance.

Several external members of policy committees regularly work in the US – experience that is considered useful to keep them in touch with global markets and macroeconomic trends but also means flights for urgent meetings will be expensive.

Staff are under pressure to reduce greenhouse gas emissions and the policy reminds them that travelling economy is less polluting.

Standard class rail travel is also required, unless first class is “justified for information security reasons – for example, travel by the Bank’s Governors or policy committee members when they are working on sensitive matters”, or when a disability requires it.

The policy does not mention staff parties or entertainment paid for by the Bank, nor the staff perk of discount membership of a Roehampton sports club, which was questioned by MPS.