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Treasury committee chair 'disappointed' on Bank diversity

Treasury committee chair 'disappointed' on Bank diversity

The chairman of the Treasury Select Committee has said she is “disappointed” by the Chancellor of the Exchequer’s efforts to improve diversity at the Bank of England.

It comes after Philip Hammond wrote to Nicky Morgan telling her recent appointments to the monetary policy committee were made on merit.

Professor Silvana Tenreyro, who was appointed in July, is the only female member of the all-white nine-member MPC.

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In a statement today, Mrs Morgan said HM Treasury “can't be complacent” on diversity.

“The committee is disappointed by the Chancellor’s response. He did not confirm whether ‘all efforts’ are being made by the Treasury to encourage as diverse a range of candidates as possible for the Bank’s policy committees and senior positions.

“Rather, the Treasury ‘seeks to encourage’ such diversity. Such appointments could benefit from a closer relationship between the Treasury and the Government Equalities Office.

“Evidence shows that employers must actively search for the best possible candidates; the Treasury can’t be complacent in tackling the lack of diversity at the Bank’s most senior levels.”

She added the committee will hear evidence from Tom Scholar, Permanent Secretary of HM Treasury, next month as it examines whether the Treasury could be doing more to encourage greater diversity.

The Treasury plans to publish a Gender Pay Gap Report in November.

Last month, the committee said it had “wider concerns” about diversity at the most senior levels of the Bank of England, following the appointment of Sir Dave Ramsden as deputy governor and Professor Tenreyro as an external monetary policy committee member.

Mrs Morgan then wrote to the Chancellor of the Exchequer Philip Hammond to ask him to confirm he was trying to encourage a diverse range of candidates for senior roles within the Bank, including on the policy committees.

She also asked for reassurance that the recruitment process for policy committees is to the same standard as appointment to within the remit of the Commissioner for Public Appointments.