The Government is in open disagreement with the Bank of England

At Prime Minister’s Questions, William Hague repeatedly asked Harriet Harman whether Labour agreed with Mervyn King that Britain cannot afford another fiscal expansion.

William described the intervention from Mr. King, the Governor of the Bank of England, as “exceptional and extraordinary”, and stressed it was a “defining moment” in Labour’s handling of the recession.

He highlighted criticism of Labour’s plans for another fiscal stimulus from the CBI, the ITEM Club and the Chief Executive of the Audit Club, as well as from Mr. King.

And when Harriet Harman refused to confirm whether or not the Government agreed with the Governor of the Bank of England, William said:

“The nation will rightly conclude that this Government are in open disagreement with the Bank of England and are no longer in control either of the public finances or the policies of this country.”