The appointment of Andrew Bailey as the next governor of the Bank of England reportedly divided the prime minister’s office with Boris Johnson’s chief adviser making a failed bid for an alternative to head up the central bank.
Dominic Cummings was campaigning against Sajid Javid to instead install Bank of England deputy governor Andy Haldane in the top job, the Evening Standard reports. Cummings preferred Haldane due to his “more radical tendencies” than the Financial Conduct Authority boss, the newspaper said.
Haldane published a paper this month highlighting regional disparities in productivity and calling for the government’s feet to be held to the fire over its industrial strategy. This chimed with Cumming’s efforts to “level up” the regions.
But Johnson ultimately sided with the chancellor with Bailey revealed in December to be the next governor. His term starts on 16 March.
The clash over the appointment is a symptom of a growing rift between the chancellor and Cummings, the newspaper said.
Bailey has been a contentious appointee due to his track record at the FCA during a period that has seen retail investors burnt by episodes such as the Woodford Equity Income fund suspension and the London Capital Finance mini-bonds mis-selling scandal.
In January, Javid was forced to defend Bailey in the House of Commons as Labour called for the FCA boss to be investigated before he was installed at the central bank.
