Andrew Tyrie (Chairman of the Treasury Committee), in a letter to the Chancellor dated 26 January, has demanded a veto on the hiring of financial regulators following the appointment of Andrew Bailey as the new head of the FCA.

Mr Tyrie warns that the “perception” that financial regulators have become “vulnerable to political pressure” is hindering their work. Believing that the Treasury committee should be given veto over both the FCA and PRA, Mr Tyrie seeks Mr Osborne’s assurance that he will not make decisions on either post without MPs’ approval – mirroring the current process in place for the Office for Budget Responsibility (OBR’s) senior leadership.