London Daily

Focus on the big picture.
Friday, Apr 24, 2026

Tory MPs to grill Bank of England governor over high inflation

Tory MPs to grill Bank of England governor over high inflation

Andrew Bailey’s appearance at select committee will come amid work from chancellor to find new ways to ease cost of living
The Bank of England governor, Andrew Bailey, will face a grilling from angry Conservative MPs over inflation on Monday, as cabinet sources moved to quell the incendiary remarks about the Bank’s independence.

The governor’s appearance before MPs – which has been likened to the showdowns with former Bank boss Lord Mervyn King during the 2008 crash – will come amid intense work from the chancellor, Rishi Sunak, to find new measures to ease the cost of living before the summer recess.

Labour will challenge Conservative MPs to vote for a windfall tax on oil and gas companies in an amendment to the Queen’s speech – a move Sunak has failed to rule out but which is intensely opposed by the business secretary, Kwasi Kwarteng.

Bailey’s appearance at the Treasury select committee will come in the aftermath of growing criticism of the Bank’s performance, including from some cabinet ministers, one of whom told the Telegraph they were now “questioning its independence”.

Cabinet sources moved to quell speculation, with one dismissing the prospect as “not even up for discussion”. Another cabinet minister called independence “sacrosanct” and said the Bank’s situation was not unique: “All central banks are grappling inflation.” A Downing Street source said that Boris Johnson was not entertaining the prospect.

Harriett Baldwin, one of the Tory MPs on the committee, said there were serious questions for the Bank to answer on inflation. “I have been flagging up for a long time now the risk of them misjudging things and putting in too much monetary stimulus into the economy for too long,” she said.

“When things started to open up again, they didn’t really take their foot off the pedal very quickly. There are things that have been unforeseen like the war in Ukraine, but there are things that were foreseen that the fiscal and monetary stimulus was there for too long and too protracted once things started to recover.”

Kwarteng said on Sunday that it was concerning that inflation was running higher than the Bank’s target. “It is a matter of fact that when the Bank of England became independent in 1997, they had an inflation target of 2%. Inflation is running into almost double digits now. That is an issue, clearly,” he told Sky News’ Sophy Ridge on Sunday programme.

“We have had the Covid pandemic, we have had a huge spike in economic activity after the lockdown restrictions were eased, and then, of course, you have got this war in Europe for the first time in 70 years.

“All of these things mean that it is a very difficult time and I think [Bailey] is doing a reasonable job. But it is true to say that 2% is part of their mandate and they have to keep it to 2%.”

Labour said the attacks on the bank’s independence were a distraction. Rachel Reeves, Labour’s shadow chancellor, said: “Instead of trying to blame the Bank of England for the government’s mistakes, the chancellor should call an emergency budget, scrap the hike in national insurance and back Labour’s costed plan for a windfall tax to help keep people’s energy bills down.”

The Treasury has denied plans for an emergency budget but is expected to announce some new limited measures to ease the cost of living once data on fuel prices appears within the next fortnight, which will inform the autumn price cap rise.

Tax changes will be impossible before the autumn budget, though Johnson has repeatedly insisted to MPs that he is looking for ways to cut taxes.

The shadow climate change secretary, Ed Miliband, said it was “frankly obscene that the government is refusing” a windfall tax on oil and gas companies and predicted it was inevitable, calling it an “unanswerable case”.
Newsletter

Related Articles

0:00
0:00
Close
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
UK Calls for Full and Toll-Free Access Through Strait of Hormuz Amid Rising Tensions
Starmer Signals Strategic Shift for Britain Amid Escalating Iran-Linked Tensions
UK Issues Firm Warning to Russia Over Covert Underwater Military Activity
OpenAI Halts Stargate UK Project, Casting Uncertainty Over Britain’s AI Expansion Plans
Starmer Voices Frustration Over Global Pressures Driving UK Energy Costs Higher
UK Deploys Military Assets to Protect Undersea Cables From Suspected Russian Threat
Canada Aligns With US, UK and Australia as Europe Prepares Major Digital Border Overhaul
Meghan Markle’s Planned Australia Appearance Sparks Fresh Speculation
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
UK to Partner with Shipping Industry to Rebuild Confidence in Strait of Hormuz, Cooper Says
UK Interest Rate Expectations Ease Following US–Iran Ceasefire Agreement
Starmer Signals Major Effort Needed to Fully Reopen Strait of Hormuz During Gulf Visit
UK Fuel Prices Face Ongoing Volatility Amid Global Pressures and Domestic Factors
Kanye West’s Planned Italy Festival Appearance Draws Debate After UK Entry Ban
Smuggling Routes Shift Toward Belgium as Migrant Crossings to UK Evolve
Ceasefire Offers Potential Relief for UK Fuel and Food Prices Amid Ongoing Uncertainty
Iran Conflict Raises Questions Over UK’s Global Influence and Military Preparedness
Senator McConnell Visits Kentucky to Highlight Federal Investment in Local Projects
Kanye West Barred from Entering UK as Legal Grounds Come into Focus
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
×