Ministers to set up inquiry into City regulation reforms

An influential committee of MPs said it will open an inquiry into Treasury reforms of City regulation after it expressed fears that powers given to the Bank of England will influence the path of the economy without adequate safeguards. The Treasury select committee also demanded that the government provide an assessment of the move to a 45p tax rate. In its report on the last budget, it said an over-reliance on measuring the output gap to predict growth in the economy should possibly be abandoned in favour of a broader set of measures.