Bank of England Independence

[jrtv]

I read somewhere that it was Nigel Lawson's idea to give the Bank of England independence and he prepared the legislation to put in in place, was this right or is Gordon Brown right to take all the credit ?

[kempie]

During early 1988 the Chancellor of the Exchequer, Nigel Lawson, requested officials to study the case for, and practicalities of, giving the Bank of England statutory independence.

The Treasury did not approve the change, but Lawson nonetheless prepared a memorandum for the Prime Minister urging an independent Bank. The initiative came to nothing, because Margaret Thatcher rejected the proposal. But after she left No.10 work continued on Bank of England independence on the initiative of officials, preparing in case ministers asked for a reexamination of the issue. In the event that moment came only with the arrival of the new Labour Government in May 1997.

Records of this were released by the Treasury on 7 March 2005 as an FOI disclosure...
http://www.hm-treasury.gov.uk/about/informatio n/foi_disclosures/foi_indempc_070305.cfm

[Loosehead]

I think Gordon deserves the credit. Not his idea but he carried it through and actually implemented it. One of the few good things New Labour have done but not and entirely selfless act as the government can rightly claim to not be culpable if interest rates have to rise and the bank being a fiscal organisation would not be bothered too much about the political effect of their actions.