Labour MP Luke Akehurst has hit back at Conservative criticism of Paul Nowak’s appointment to the Bank of England’s Court of Directors, pointing out that trade union representation on the Bank’s governing body has a long history under governments of both parties.
Chancellor John Healey announced on Wednesday that TUC general secretary Paul Nowak had been appointed as a non-executive director of the Bank of England for a four-year term, replacing his predecessor at the TUC, Baroness Frances O’Grady.
The appointment prompted criticism from Conservative leader Kemi Badenoch, who accused Labour of being under trade union influence.
Akehurst responded:
“Every Tory Chancellor since 1951 has also appointed a trade unionist to this Bank of England role!”
The Bank of England’s own history records that, following nationalisation in 1946, its Court of Directors began to include trade union representation alongside bankers and industrialists.
Nowak succeeds Frances O’Grady
Nowak will take the seat previously held by Baroness Frances O’Grady, who was appointed to the Court in 2019 by then Conservative Chancellor Philip Hammond.
He will continue as TUC general secretary while serving at the Bank and is expected to attend his first Court meeting on 22 October, according to the Bank of England.
The Court is the Bank of England’s governing board, responsible for overseeing its strategy, budget and institutional effectiveness. It does not set interest rates, which remain the responsibility of the Monetary Policy Committee.
Healey says appointment brings ‘deep and varied experience’
Announcing the appointment, Healey said:
“These appointments strengthen the Court at a critical moment for the UK economy, providing deep and varied experience to support the Bank in delivering its core missions of monetary and financial stability.”
Nowak leads the TUC, which represents 47 affiliated unions and around 5.3 million workers. He has also represented British workers internationally through organisations including the International Labour Organisation, OECD and G20.
He joins David Craig, founder and former chief executive of Refinitiv, among the Bank’s new non-executive appointments, while investment executive Hanneke Smits will join next year.
Longstanding convention, not a Labour innovation
Akehurst’s intervention challenges the suggestion that appointing a trade union leader represents a break with established practice.
The Bank itself notes that trade unionists have served on its Court since the post-war period, reflecting an intention to bring a wider range of economic experience into the institution’s governance.
O’Grady’s appointment by a Conservative Chancellor provides a more recent example of that cross-party convention.
Akehurst’s argument is that Nowak’s appointment is not evidence of a new union takeover of economic institutions, but the continuation of a longstanding tradition of ensuring the Bank of England hears directly from working people as well as finance and business.
