Brexit rage: How furious ex-Chancellor called for Mark Carney’s resignation
Mr Carney stepped down as the Bank of England chief on Brexit day, January 31 and the new governor Andrew Bailey is expected to start in March. Mr Carney has been in the role since July 2013, and quickly became a controversial figure during his seven-year stint. He repeatedly condemned Brexit and repeatedly claimed it would negatively affect the UK economy, enraging Brexiteers up and down the country.
Brexiteer Lord Nigel Lawson told LBC in September 2016 that Mr Carney had “behaved disgracefully” by getting involved with the matter.
Both before and after the EU referendum of 2016, the fiscal chief warned that the UK would be exposing itself to many fiscal risks – including recession – which led critics to accuse him of reviving Project Fear.
The Conservative peer agreed that the Bank of England chief was a “doom-monger”.
As Mrs Thatcher’s former Chancellor, Lord Lawson said: “I have known all six of his predecessors as Governor of the Bank of England and not one of them would have thought it proper to behave as he has done, particularly during the campaign when he joined in the chorus of scaremongering.
“He wasn’t the worst but he shouldn’t have joined in it at all.
“Now he is seeking to validate the improper remarks he made during the course of the campaign.”
Lord Lawson’s words followed the Bank of England Financial Policy Committee’s report which said Brexit would bring a “challenging period of uncertainty and adjustment”.
Mr Carney suggested a cut in interest rates and £250billion of funds donated to financial institutions would appease the consequences of Brexit.
Lord Lawson said: ”It is appalling and I think the sooner he stands down from the governorship, the better, quite frankly.”
However, in September 2018 the-then Chancellor Philip Hammond said Mr Carney would stay in his role until January 2020 so that there was a smooth transition for the UK when leaving the EU – although that was in line with the original Brexit date of March 29, 2019.
Lord Lawson, who became Chair of the Vote Leave campaign in 2016, continued to lay into the Bank of England after Mr Hammond’s announcement.
Speaking to Julia Hartley-Brewer during her TalkRadio show in 2018, he said the financial institution was no longer ‘trustworthy” because it has become “politically motivated”.
He explained: “It used to be trustworthy [but] it has changed under the governorship of Mr Carney.
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“What we have now is completely irresponsible scaremongering and it’s politically motivated, which is undesirable.
“I think Mr Carney is now backtracking, saying we weren’t predicting this at all saying he was just putting it as a possible worst case.
“But it is complete rubbish, it is Project Fear all over again.
“We had it at the time of the referendum as we were told the most terrible things would happen if we voted to leave the European Union and of course, nothing of the sort happened.”
He said Mr Carney’s advice could be “discounted completely” and that he “deplored” the politicisation of the UK’s central bank.
Lord Lawson explained: “There are great opportunities of regaining control over our tax and regulatory systems.
“The UK will benefit from a much better economic framework than we could possibly have with the European Union.”
Fellow Brexiteer Andrea Leadsom also opposed Mr Carney’s interventions into Brexit, and said even before the EU referendum that “I will expect that the governor will be significantly regretting getting involved in policies”.
However, by February 2019, Mr Carney seemed less hostile to Brexit and said it was “the first test of a new global order” which could help “enhance democratic accountability”.
The new Governor, Mr Bailey, was appointed after securing the current Chancellor Sajid Javid’s support.
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