Paul Nowak, general secretary of the Trades Union Congress (TUC), has been appointed to the Bank of England’s Court of Directors, the institution’s board, for a four-year term. The appointment was made by Chancellor John Healey and includes a remuneration of £20,000 annually for a commitment of approximately three days per month. Nowak has stated he intends to donate this salary to charity.

The announcement coincides with Nowak’s continued advocacy for increased taxation on the financial sector, particularly targeting banks' profits. He has argued that raising taxes on banks would generate revenue to support households facing rising living costs. “Taxing bank profits to cut bills is common sense,” Nowak said, reaffirming his position. The TUC has been a prominent voice in calling for these fiscal changes, urging the government to respond to economic pressures on ordinary families.

In addition to Nowak, the Chancellor has appointed David Craig, founder of the financial markets data provider Refinitiv, and Hanneke Smits, a senior investment manager, to the Bank of England’s Court of Directors. These appointments aim to enhance the board’s expertise and oversight capabilities. The Court is responsible for guiding the bank’s strategy, governance, budgeting, and risk management frameworks.

HM Treasury noted that Nowak confirmed he had refrained from party-political activities in the past five years, despite his visible support for Labour leader Andy Burnham shortly after his election two months ago. This detail has drawn criticism from some quarters. Reform’s Treasury spokesperson, Robert Jenrick, described the appointment as a political reward, accusing the government of “shamelessly” favoring its supporters.

The Trades Union Congress responded by emphasizing that TUC leaders have previously held positions on the Bank of England’s board under both Labour and Conservative Chancellors, portraying the inclusion of trade union representation as a longstanding, non-partisan practice.

Chancellor Healey defended the appointments, stating they bring diverse expertise to the Court, which is essential for the Bank to fulfill its core functions effectively. Nowak’s role places a prominent trade union figure at the center of the institution responsible for monetary policy and financial regulation, amid ongoing debates about the financial sector’s contribution to public finances.