Protecting the new governor's lifestyle

Mark Carney Mark Carney will take up his new post in July.

The Treasury offered Mark Carney a £250,000 annual accommodation allowance, on top of his £624,000 salary and cash in lieu of pension, because it did not see why his lifestyle should suffer from a move to London.

Currently governor of the Bank of Canada, Mr Carney, his English wife and four children live in a large family house a short distance from his office in Ottawa.

Apparently an equivalent home in London would cost around £2600 per week, which is the value of his new allowance after tax and national insurance.

Even so, even in the private sector, it is unusual to receive a housing subsidy on that scale.

And what may stir controversy is that Mr Carney's package protects him from the kind of gyrations in the economy that it will be his role to temper.

What is more, Mr Carney will be the first governor of the Bank of England not only to have the power to set interest rates but also to directly influence the supply of credit through the newly created Financial Policy Committee.

How would it play with people and media if he announces significant restrictions on the availability of mortgages in a housing boom, for example, when he would be wholly insulated from such tough policy announcements?

Little wonder that the non-executives on the court of the Bank of England have taken a couple of weeks to ratify the chunky housing payment which was offered to Mr Carney by the Treasury.

Robert Peston Article written by Robert Peston Robert Peston Economics editor

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  • Comment number 324.

    All this user's posts have been removed.Why?

  • rate this

    Comment number 323.

    298. Up2snuff
    "His biggest problem will be oversight of the banking industry ... It's one of our biggest earners"

    That's funny. To earn something implies wealth creation through useful labour, skill, ingenuity. What would the banking sector receive if it weren't for the £130 billion annual implicit subsidy from the UK taxpayer (Ref: BoE Financial Abstracts)?

  • rate this

    Comment number 322.


    I don't think it (National Maximum Income) would reduce tax receipts - that is the lie that is put about by paid lobbyists of the bankers etc.

    If you are against it you are saying that one man is worth more than 20 others - which is plainly ridiculous on so many levels.

    The present differentials are absurd.

    As to soccer: perhaps we would get some good native English players again!

  • rate this

    Comment number 321.

    317. Up2snuff

    Your earlier question was how do we cap incomes - I told you one way (in 312) - via the Tax system - it is just another computation of all income over £250K is payable to the tax man.

    If you evade or avoid you lose your right of abode and all UK property rights - it has to have draconian sanctions as these are the group who will make huge efforts to evade paying.

  • rate this

    Comment number 320.

    "even in the private sector, it is unusual to receive a housing subsidy on that scale.

    I thought it was the govt's intention to CAP housing benefit?

    Depends I suppose on WHOSE getting it?"

    No, it depends on WHO'S getting it.


Comments 5 of 324



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