𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour has appointed a self-declared socialist trade union baron to the board of the Bank of England, sparking fury from Westminster.

The move has triggered fears from economists and MPs that the appointment could spook investors, and raises concerns about conflicts of interest at the bank.

Political rivals of Chancellor John Healey claimed the Government was “dishing out” jobs to unions, which have poured hundreds of millions into the Labour Party war chest.

Paul Nowak, 54, currently serves as the general secretary of the powerful Trades Union Congress (TUC) and has no experience working at a bank other than as a non-executive director.

The position comes with a pay packet of £15,000 a year, which will top up his gold-plated £167,000 annual salary as boss of the TUC.

Mr Nowak began climbing the greasy union pole aged 17 while working part-time in a supermarket.

He soon became a union organiser aged just 26, ascending to the position of the boss of the TUC.

In the past, he has called for additional taxes on banks’ profits, as well as a relaxation of the rules governing migrant workers.

The trade union baron has previously referred to himself as an “ambitious socialist” and recently lashed out at donations to the Reform UK party from British-born businessmen.

That is despite member unions of the TUC handing hundreds of millions to Labour over the past two decades, something Mr Nowak did not object to.

Richard Tice, the Reform UK party’s deputy leader, slammed the appointment as “staggering”.

He told the Daily Express that the “socialist Chancellor has dished out a big Bank of England finance job to a socialist union boss who knows nothing about finance”.

Mr Tice added: “Clearly, trade union donations not only buy your way into government policymaking, but also onto the Bank of England’s board. This is cronyism in plain sight.”

Reform UK’s Shadow Chancellor Robert Jenrick fumed: “Burnham’s out of ideas and now shamelessly dishing out jobs to reward his paymasters.

“The unions have given Labour £248million since 2001, and they expect jobs like this in return. The hypocrisy of the Labour Party is off the charts.”

Tory Shadow Chancellor Andrew Griffith told the Daily Express it was the “last thing our country needs”.

He added: “If it wasn’t obvious who is driving this Labour Government’s agenda, this should give you a good idea.

“Labour are taking us back to the 1970s with their high-tax, high-spend agenda – just as Burnham’s own former economic adviser Andy Haldane admitted.”

Val Boboc, senior economist at the Institute of Economic Affairs, said: “The Bank of England’s independence is vital to maintaining confidence in one of Britain’s most important economic institutions.

“Appointing the serving head of the TUC to its governing body raises legitimate questions about potential conflicts of interest. The Bank should be clear about how those conflicts will be managed and its independence protected.”

Silvia Andreoletti, head of communications at the Adam Smith Institute, said: “An independent central bank is crucial to a healthy economy.

“Paul Nowak’s appointment to the Bank of England’s Court of Directors is a worrying sign: placing a Labour ally with little economics experience at the top of Britain’s monetary policy institution signals to investors that the Bank’s goals are more political than monetary.

“Especially in light of gilt yields hitting a 28-year high yesterday – meaning Britain’s borrowing costs are higher than any other G7 country – the Government’s priority should be to control spending and slow inflation, not secure promotions for its allies.”

Welcoming the appointment, Mr 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.”