This article is more than 3 years old

This article is more than 3 years old

The Bank of England is pushing ahead with plans for transitional arrangements after Brexit negotiations in an attempt to protect financial institutions from a cliff edge deal that could undermine their stability.

Governor Mark Carney has met senior figures in the City to stress the need for a smooth path out of the European Union that maintains its stature and strong links with the continent.

The meetings followed his submissions to the Treasury select committee that outlined his view that banks and other financial institutions would need to be given time to put new rules in place after a deal had been struck with Brussels.

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The Confederation of British Industry and the British Bankers Association have lobbied No 10 and No 11 to impress on the prime minister and chancellor that transition arrangements would be needed or firms could face a barrage of new tariffs and trading relationships.

Banks are concerned “passporting” agreements that allow transactions to flow across border uninterrupted could be scrapped or modified as part of the Brexit negotiations, denying them easy access to customers inside the single market.

Brexit supporters cast Carney as a member of an elite that will campaign behind the scenes by placing administrative roadblocks in the way of a quick exit.

But Threadneedle Street has emphasised that it respects the result of the referendum vote and merely wants to protect a vital sector of the economy from unnecessary harm after article 50 talks.

Carney was facing criticism for spending almost £100,000 of taxpayers’ money on the Bank of England’s annual summer party, just weeks after the Brexit vote.

The governor and about 2,500 Bank staff, policymakers and their families attended its annual summer sports day, at a cost of £99,035 to the public purse.



The Bank insisted it “carefully budgeted” for the Governors’ Day get-together on 10 July at its sports ground in Roehampton, south-west London, according to a freedom of information request by the Press Association.

The TaxPayers’ Alliance branded the party a “huge slap in the face to all those who have struggled under the Bank of England’s policies”.

The campaign group’s chief executive, John O’Connell, said: “Not only have savers had very little to celebrate over the last eight years because of rock bottom interest rates, but many will rightly be angry that staff are then spending huge sums of money on lavish parties for themselves.”

The Bank said: “Governors’ Day] is a long-held tradition that is open to all employees – including members of the monetary policy committee – including their families, with the aim of recognising their hard work and dedication.”





It added: “The annual event is an important one for all Bank employees and the Bank strongly believes that this carefully budgeted event is worthwhile.”

