Bank of England ‘could relocate’ to Birmingham

Bank of England

Parts of the Bank of England could be moved to Birmingham by a Labour Government, after a report favoured major changes to how the central bank operates.

A report, commissioned by shadow chancellor John McDonnell, has recommended relocating significant parts of the Bank to create an economic policy hub.

It would sit close to the National Investment Bank and Strategic Investment Board, two organisations that the Labour leadership are planning to create if they form a government.

The report by consultants GFC Economics and Clearpoint Corporation Management argues the regions are “underweighted” in policy decisions made by the Bank.

McDonnell said: “This important report drums home the message that our financial system isn’t delivering enough investment across the whole country, and in the high-technology industries and firms of the future where it is needed most.”

If it were to happen it would be a huge boost to a region which is already has strong momentum. HSBC will open its retail banking headquarters in Birmingham in the first half of next year, joining a large financial services sector and a growing fintech hub.

The region last week secured the UK City of Culture title for 2021, when Coventry was chosen as the successor to Hull, while Birmingham could shortly be named as the host of the 2022 Commonwealth Games.

The first phase of HS2, linking Birmingham and London, is scheduled to open in 2026 and will reduce journey times by 40% to 49 minutes.

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