The Bank of England plans to clamp down on "staggeringly high" expenses after two officials spent almost £400,000 on travel.

Two American members of the bank's financial policy committee, Donald Kohn and Anil Kashyap, came in for criticism from MPs after they racked up the expenses of £390,000 mainly on business flights and fares over more than two years.

Staff have been told they should use public transport instead of taxis, travel by rail instead of air, fly economy and make more use of video conferences.

The bank's new guidelines, published on Friday, suggest business class flights should only be used on flights of 10 or more hours, although business class travel for shorter flights could be taken for disability and security reasons.

It is also placing a cap on hotel expenses at £125 a night in the UK and $275 in the US.


The bank said it will seek to ensure "value for money" and take into account the environmental impact of travel decisions.

Nicky Morgan MP, chairwoman of the Treasury Committee, said: "Given the staggeringly high level of expenses claimed by some members of the Bank of England's policy committees, the review of its expenses policy is welcome.

"The Bank must now ensure that the new rules are followed in both letter and spirit by all staff across the organisation.

"The Treasury Committee will examine the Bank's expenses, as well as the review itself, in detail when we take evidence from the Court of the Bank of England in the New Year."

Figures released by the Bank also showed that governor Mark Carney racked up more than £50,000 in expenses between March and May, resulting from £49,876 on foreign business travel and a further £781 on car hire and taxis.

The bank was also criticised by MPs for spending £100,000 on its annual summer party in 2016.

"That is one hell of a party," Conservative MP and member of the Committee Simon Clarke said at the time of the revelations in June.

Mr Kohn is a former vice chairman of the US Federal Reserve and Mr Kashyap is a professor of economics and finance at the University of Chicago Booth School of Business.

The new travel and expenses policy kicks in from March 2019.