(Reuters) - Britain’s Labour Party is considering moving some of Bank of England’s functions to Birmingham, from its current home in Threadneedle Street in the City of London, according to an interim report on the British financial system released on Sunday.
Launched by the opposition Labour Party’s finance policy chief John McDonnell, the report was led by consultants GFC Economics.
The report’s main recommendations included establishing BoE offices in Glasgow, Cardiff and Belfast, along with two smaller regional offices in Newcastle and Plymouth. It also called for locating Labour’s National Investment Bank in Birmingham.
Britain’s output from high-tech industries has fallen on average over the last 10 years, the report said, with only one other EU member performing more poorly.
Investment in manufacturing, information and communications technology and other critical sectors in Britain is lagging 28 billion pounds behind investment in real estate companies, the report added.
Commenting on the report, Labour’s Shadow Chancellor John 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”.
The report said that the proposed recommendations will be considered for inclusion in the next Labour manifesto.
Reporting by Sangameswaran S in Bengaluru and Elizabeth Piper in London; Editing by Will Dunham