With Britain in a cost of living crisis, the former Prime Minister has attacked the Bank of England, which was made independent from the government by former Labor Chancellor Gordon Brown for failing to address the threat to Britain’s economy. understood. It comes as Chancellor Rishi Sunak has risked infuriating his Tory MPs even more by appointing another anti-Brexit economist to the Bank’s board.
The latest economic news has rocked the Treasury with a 0.1 percent GDP drop, suggesting Britain is on the brink of plunge into recession.
A record 54 percent increase in energy costs has pushed inflation to 7 percent in the past month, and the figure is expected to rise further.
During his speech in parliament, Dr. Fox blamed the Bank for failing to fulfill its duty to manage the country’s finances.
The speech marked the 30th anniversary of his maiden speech after being first elected in the 1992 Conservative victory led by John Major.
He said: “It is almost universally accepted that the government’s primary duty is to protect its citizens. As a former Defense Minister, I am all too aware of the many external threats to the security of our people and our country, but there are other threats that I think we have a right to be protected from: the degradation of our currency, the erosion of our earnings, and the devaluation of our savings.
“I believe it is fundamentally wrong for governments to engage in structural debauchery, spend excessive amounts of money over the economic cycle, and pass on increasing amounts of debt to the next generation.”
He continued: “I also believe that it is the duty of central banks to safeguard the value of our money and our savings. The Bank of England has persisted beyond any rational interpretation of the data to tell us that inflation is nature, and that it peaked at 5 percent. It has consistently underestimated the threat.”
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It comes as Chancellor Rishi Sunak has appointed a staunch critic of Brexit as one of his key policymakers, angering many Tory MPs.
Mr Sunak has elected Dr Swati Dhingra, an associate professor at the London School of Economics, to serve on the Bank’s rate-setting Monetary Policy Committee (MPC) despite criticism in recent years of an anti-Brexit deal. prejudice in Threadneedle Street.
Pressure has been put on the government to instead find pro-Brexit alternatives to sit on the bench that wants to make Brexit a success.