In a recent interview, former Bank of England governor Mark Carney dispelled rumours about his potential involvement in a future Labour government.
- Carney confirmed that his time in UK officialdom has concluded and laughed off speculation about political roles.
- Despite endorsing shadow chancellor Rachel Reeves, Carney is focusing on global initiatives rather than UK politics.
- Carney’s advocacy for a greater role of financial authorities in achieving net-zero objectives contrasts with Chancellor Hunt’s current stance.
- He underscored the necessity of private capital in leading the net-zero transition, highlighting the UK’s fiscal limitations.
In response to queries about potential political roles or offers, Mark Carney, former governor of the Bank of England, categorically dismissed such speculation, stating, ‘My time in UK officialdom is over.’ Carney, known for his tenure from 2013 to 2020, recently fuelled speculation about a political career in the UK after endorsing shadow chancellor Rachel Reeves at the Labour Party conference last autumn.
Carney is currently advising Reeves on the creation of a National Wealth Fund. However, despite these endorsements and advisory roles, he remains distanced from frontline politics.
After leaving his position at the Bank of England, Carney has redirected his focus towards coordinating global efforts to finance net-zero initiatives. Speaking at an event hosted by Deloitte at the London School of Economics, he emphasised the need for financial reforms to support climate goals. He articulated, ‘The remit of financial authorities, including the Bank of England, the FCA, should be refreshed to ensure that they in a hierarchical way support the government’s net zero objective.’
These remarks come in the wake of Chancellor Jeremy Hunt’s decision last year to deprioritise climate change within the Bank of England’s objectives—a move that shadow chancellor Rachel Reeves has publicly opposed. Carney’s tenure at the Bank of England was notably marked by a strong focus on climate change and green finance, a stance that has been contested by his predecessor, Mervyn King, who argued it detracted from controlling inflation.
During his address, Carney highlighted that global disruptions have significantly reduced the UK economy’s potential growth. He stated that the UK economy is 40% smaller than it would have been if it had continued on its pre-financial crisis trajectory. He pointed to the most substantial geopolitical and economic policy shifts since the fall of the Berlin Wall, advocating for private capital to lead the net-zero transition given the UK’s budget constraints. Carney concluded, ‘Budget constraints require a targeted approach and striking the right balance. These are big judgments to be made about encouraging domestic activity and lower-cost solutions through imports.’
Mark Carney remains focused on global climate initiatives, distancing himself from any future political role in the UK.
