{"id":88289,"date":"2025-12-09T07:55:50","date_gmt":"2025-12-09T07:55:50","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=88289"},"modified":"2025-12-09T08:36:07","modified_gmt":"2025-12-09T08:36:07","slug":"nine-people-need-to-go-to-the-bank-of-england","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/12\/09\/nine-people-need-to-go-to-the-bank-of-england\/","title":{"rendered":"Nine people need to go at the Bank of England"},"content":{"rendered":"

This piece in a Telegraph newsletter<\/a> this morning is a classic:<\/p>\n

The Bank of England<\/strong>\u00a0has warned its near 6,000-strong workforce of job cuts as it seeks to fund an overhaul of its flawed economic forecasts.<\/p>\n

Andrew Bailey<\/strong>\u00a0has invited all staff to apply for a voluntary resignation scheme as part of a \u00a345m cost-cutting drive, prompted by the central bank spending millions of pounds on IT upgrades and changes to the way it analyses the economy.<\/p>\n

While the\u00a0Bank\u2019s Governor<\/strong>\u00a0stressed the scheme was \u201centirely voluntary\u201d, he also warned: \u201cWe cannot rule out compulsory redundancies later down the line.\u201d<\/p>\n

It comes after an independent review led by\u00a0Ben Bernanke<\/strong>, the former\u00a0Federal Reserve\u00a0<\/strong>chairman, warned that the Bank\u2019s ability to control inflation had been undermined by \u201csignificant shortcomings\u201d in its economic forecasts.<\/p><\/blockquote>\n

I am, of course, aware that the Telegraph has put its own spin on this, but let me do the same.<\/p>\n

The Bank is worried about things right now:<\/p>\n

    \n
  1. Its own economic incompetence, to address which it apparently needs to invest.<\/li>\n
  2. The overvaluation of AI.<\/li>\n
  3. The resulting risk of recession.<\/li>\n<\/ol>\n

    So, it has decided to:<\/p>\n