Bank of England staff could go on strike as trade union Unite is balloting its members over industrial action, accusing the institution of “treating its workers with contempt” with a below-inflation pay offer.

Members are unhappy that the Bank has only increased the pay pot this year by 1pc, limiting managers’ discretion in offering pay rises to any individual workers.

Unite believes that if staff back the industrial action, it would be the first strike in the Bank’s history.

Sources at the Bank indicate that less than 2pc of the almost 4,000-strong workforce at the Bank are members of the union. Unite denies this and says the figure is higher, but has not said how many members it has in Threadneedle Street.