New economic body announced by Chancellor to include Osborne’s ex-chief of staff
Council advisers named by Jeremy Hunt include former Bank of England policymakers, which could signal a shift back to so-called ‘Treasury orthodoxy’.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Jeremy Hunt has announced the formation of a new economic advisory council to provide “independent expert advice” to the Government as he seeks to restore economic stability after weeks of turmoil.
The new Chancellor announced the names of the first four advisers, including Rupert Harrison, who served as his predecessor George Osborne’s chief of staff during the austerity era of 2010-2015.
The panel will also comprise two former members of the Bank of England’s Monetary Policy Committee: Gertjan Vlieghe, who is now chief economist at US hedge fund Element Capital, and Sushil Wadhwani, chief investment officer for asset management company PGIM Wadhwani.
Karen Ward, who was an economics special adviser to former chancellor Philip Hammond for a year after the Brexit vote, has also been appointed to the council.
She is now investment bank JP Morgan’s chief market strategist for Europe, Middle East and Africa.
Further members will be added to the council in due course, the Treasury said.
The council, which will consist of “leading and respected experts” and act as a “consultative forum for the Government”, will be attended by the Chancellor and the Treasury’s chief economic adviser.
Mr Hunt made the announcement in the Commons after tearing up Liz Truss’s economic strategy.
Ms Truss became Prime Minister after winning the Tory leadership contest on the back of promises to dramatically cut tax and upend the status quo in the Treasury.
But Ms Truss and Kwasi Kwarteng’s tax-slashing mini-budget unleashed turbulence in the financial markets, leading to Mr Kwarteng’s dramatic sacking as chancellor and the installation of Mr Hunt in an effort to reassure investors.
The economists on Mr Hunt’s new advisory council could signal a return to the very “Treasury orthodoxy” Ms Truss railed against during her leadership campaign.
Mr Hunt told the Commons he “fully” supports the “vital, independent” roles of the Bank of England and the Office for Budget Responsibility.
I want, to be frank, to make sure that I’m getting advice from fantastic institutions, like the Treasury, the Bank of England, and the Office for Budget Responsibility, but also advice that is independent of those institutions, because that is the way we will get the best result
But he added: “But I also want more independent expert advice as I start my journey as Chancellor. So, I’m announcing today the formation of a new economic advisory council to do just that.”
Senior Conservative MP Mel Stride asked the Chancellor for reassurance that the council will not “in any way conflict with the Bank of England, or the Office for Budget Responsibility … and all of our institutions, and that it will be there to complement, not work against any of those institutions?”
Mr Hunt replied: “I can absolutely give him (Mr Stride) that assurance. I want, to be frank, to make sure that I’m getting advice from fantastic institutions, like the Treasury, the Bank of England, and the Office for Budget Responsibility, but also advice that is independent of those institutions, because that is the way we will get the best result.”
The Liberal Democrats said the panel should be made up of housing and debt charities instead of only asset managers.
An advisory panel of purely wealthy asset managers in the middle of a cost-of-living crisis proves just how out of touch this Conservative Government is
Lib Dem Treasury spokesperson Sarah Olney said: “An advisory panel of purely wealthy asset managers in the middle of a cost-of-living crisis proves just how out of touch this Conservative Government is.
“Jeremy Hunt is just as bad as Kwasi Kwarteng by shutting himself away from the financial hardship faced by millions of families and pensioners.
“This Conservative Party’s reckless and unfunded tax cuts for the wealthiest companies have sent financial markets into turmoil. It is now innocent families left to pick up the tab with spiralling mortgage bills.”