Bank of England Bill — 11 Nov 1997

Order for Second Reading read .

I beg to move, That the Bill be now read a Second time.

The Bill is a further step in our determination to modernise the British economy and to equip this country for the new global economy of the future. First, it gives the Bank of England operational independence to set interest rates to meet the Government's inflation target. It will do so through the most open, accountable set of procedures of any central bank in the world.

The Bill implements the first stage in our promise to modernise and reform the supervision and regulation of the United Kingdom's financial services industry--it spells the end of self-regulation and sets up the new Financial Services Authority, which will enjoy the confidence of consumers and the industry alike. That will give London and the UK industry as a whole a huge competitive advantage.

Ms Diane Abbott (Hackney, North and Stoke Newington):

Will my right hon. Friend explain how one can modernise the British economy by going back to arrangements that we last saw under Montagu Norman in the 1930s?

and instead announced it when the House was not sitting. Nor does he even deign to introduce the Bill himself--a Bill that hands away his most important responsibility. He will not even speak at his own abdication.

The hon. Lady is right. Over that period, we had the opportunity to see that my right hon. and learned Friend was right. His judgment has proved impeccable, and it is clear that the present Chancellor does not believe that he could emulate the success of my right hon. and learned Friend.

Question put, That the Bill be now read a Second time:--

The House divided: Ayes 364, Noes 139.

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