The Bank of England should also be renamed the Sterling Central Bank to reflect “political reality” of different areas using the pound – which include Guernsey and Jersey – according to a House of Commons motion signed by more than a dozen MPs.
The suggestion comes as the battle over Scotland’s future heats up ahead of an independence referendum.
As previously discussed on this blog, the Channel Islands use the pound but have no say in monetary policy – which sits with the Bank of England.
But a group of MPs seem to have suggested there could be a case for the Bailiwicks of Guernsey and Jersey having a say in British monetary policy, along with the Isle and Man and the devolved administrations in Scotland, Wales and Northern Ireland.
Their argument is that these areas all use the pound despite have differing degrees of fiscal independence – and that the current set-up at the Bank of England needs reforming as a result.
The MPs’ motion states that it “believes in the spirit of a partnership of equals within the currency zone that the devolved parliaments in future should each appoint an external member” to the Bank of England’s monetary policy committee.
On top of that, the MPs say that the Bank of England should be renamed the Sterling Central Bank to reflect “political reality”. There would also be improved accountability arrangements for all parties involved.
The arguments have been put forward in a House of Commons early day motion, which is a way of MPs raising issues of concern.