Labour’s big ideas won’t work, Bank chief warns
The Bank of England’s chief economist has dismissed Labour’s proposals to make the central bank improve Britain’s weak productivity growth, arguing that the institution does not have the “tools to effect lasting change”.
In a blow to John McDonnell’s plans for a Labour government to expand the role of the Bank, Andy Haldane said central bankers “do not build schools, colleges, houses, roads, railways or banks. Nor do we finance them. Those tools, rightly, are in the hands either of governments or private companies.”
Mr Haldane said that while the Bank provides one of the necessary foundations for productivity with its objective of maintaining price and financial stability, productivity itself is dependent on infrastructure, skills, innovation and companies’ ability to raise money.
His comments come…
