The Bank of England (BoE) has published a new travel and expenses policy for staff, six months after the Treasury select committee took it to task for failing to consider value for money, with MPs saying they were ‘gobsmacked’ at the amounts spent on flights and the annual summer party
Bradley Fried gave evidence to the committee on his appointment as chair of the Court of the Bank of England and was put on the spot over its expenses regime. Committee member Simon Clarke highlighted that in the past two and a half years, two members of the Financial Policy Committee (FPC) had incurred £390,000 in travel expenses.
At the time, Clarke said: ‘I can certainly say that my constituents would be gobsmacked to hear that, for example, one return flight from Chicago to London for a meeting in February this year for Mr Kashyap cost £11,084.89. Given the diaries involved, I would envisage these meetings must be scheduled months in advance. I cannot understand how that figure has been arrived at.
‘On another occasion, Mr Kohn’s flight from Washington cost £8,000, and there was then a further £469 in taxi fares for one meeting. Again, this is just unconscionable.’
Clarke also cited the annual summer party which cost £100,000 in 2016, noting ‘that is one hell of a party. This is what I want to understand. Is that public money and, if not, whose money is it?’
In addition, the MP queried membership terms for the BoE’s sports facility at Roehampton, which are £1,464 per year for the general public but BoE employees pay £50 a year.
‘I appreciate that, as part of any package for talented people you want to recruit and retain, you may want to make allowances, but again that is an extraordinarily good deal, and it would suggest there is an extraordinary subsidy being offered there. How does that fit with promoting the Bank’s mandate of promoting the good of the people of the UK by promoting monetary and financial stability?’ Clarke said.
The revised BoE policy covers flights, taxis, meals and hotels when on bank business, but does not directly cover the sports facility use.
Nicky Morgan, chair of the Treasury committee, said: ‘Given the staggeringly high level of expenses claimed by some members of the Bank of England’s policy committees, the review of its expenses policy is welcome. The Bank must now ensure that the new rules are followed in both letter and spirit by all staff across the organisation.
‘The Treasury committee will examine the Bank’s expenses, as well as the review itself, in detail when we take evidence from the Court of the Bank of England in the new year.’
Bank of England travel and expenses policy is here
Report by Pat Sweet
