Labour pledge Bank of England review as part of their ‘new economics’

John McDonnell, MP
John McDonnell, MP
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labour’s new economimc plan would involve a radical review of the Treasury and Bank of England, as the party’s new shadow chancellor attempts to overhaul their image as ‘deficit deniers’.

John McDonnell, who was one of new Labour leader Jeremy Corbyn’s first appointments, will set out today in a speech to the Labour party conference in Brighton how some of the country’s financial institutions are not ‘fit for purpose’.

Branded the ‘new economics’ for the ‘new politics’, Labour’s strategy also involves Mr McDonnell convening a team of global economic experts, including Nobel prize winning Joseph Stiglitz who worked for the US Government and takes a critical view of strict free market principles.

This Econommic Advisory Committee will report directly to Jeremy Corbyn.

Seema Malhotra, Shadow Chief Secretary for the Treasury, said Mr McDonnell is expected to say: “We need to prove we can run the economy again, and do it better than the few who don’t represent the whole nation who are running it now.

He will add how he wants to change the economic discourse and the narrative.

The Bank of England review would reassess its mandate while the Treasury would be reformed to be more intune with econommic growth, according to Ms Malhotra.