Friday, 29 November 2013

Great British Understatement

From The Guardian, no less:

... in a letter to Treasury select committee chairman Andrew Tyrie, published on Thursday, Carney makes clear that while the Bank's financial policy committee (FPC) could advise the government at any time if Help to Buy is putting financial stability at risk, the final decision about if it should continue will lie with the Treasury.

"The FPC has no power to require the Treasury to vary the terms of, or close, the Help to Buy scheme," Carney writes in reply to a letter from Tyrie earlier this month asking him to clarify the Bank's role. "The FPC only has the authority to make recommendations in connection with such matters … the FPC is not constrained by the government's timetable for any such advice; it could make recommendations at any time."

That message appeared to contradict statements by senior coalition figures, including Conservative chairman Grant Shapps, who told BBC Radio in September: "We put the Bank of England solidly in charge of this scheme. We've said to them: 'You look at this every year, and if you're not happy with this Help to Buy Scheme, then you'll be [able] to cancel it."

Deputy prime minister Nick Clegg said of the policy last month: "Of course we need to moderate it, even turn it off if we think it is not appropriate and is providing inappropriate stimulation to the housing market. That is precisely why we have transferred the right to do that to the Bank of England so they can keep an eye on it – not politicians, not George Osborne, not the Treasury."


Lola said...

The whole boiling lot of them are a bunch of fuckwits. ('scuse my lapse into invective).

Leg-iron said...

So... it's buck-passing?

Mark Wadsworth said...

L, yes,

LI< no "buck passing" would not be quite as bad. What they are doing is "lying".

Bayard said...

Mark, politicians never lie, they employ terminological inexactitude.

Mark Wadsworth said...

B, no, in this case, either Carney or Clagg-Shapps are telling an outright lie. They have completely contradicted each other.