Treasury committee set to admonish incoming Bank of England deputy governor

The future of Charlotte Hogg, the incoming deputy governor of the Bank of England, is in the balance with a committee of MPs poised to release a critical report about her suitability for the post.

MPs said that the unanimous report by the Treasury select committee will only just fall short of recommending that she does not get the senior role at Britain’s central bank. “Not in those words, but it reads the same way,” said one.

They are now waiting to see whether she will tough out their criticism or abandon her candidacy, according to those involved in the discussions.

Ms Hogg, who is from a family of distinguished politicians, was formerly the chief operating officer at the Bank.

The committee held a meeting last week to consider her admission that she only belatedly told the bank that her brother is director of group strategy at Barclays, which is regulated by the BoE.

Some MPs were also concerned about Ms Hogg’s evidence to the committee, in particular her grasp of monetary policy – although they published a report last week declaring she had sufficient professional competence.

The publication of the report is earlier than expected, with officials having briefed that it would come out some time mid-week.

The Bank has been thrown by the furore, with senior staff “locked in meetings” last week discussing how to respond to protect the reputation of one of Britain’s most august institutions.

But officials have publicly insisted that they still have confidence in Ms Hogg, saying her failure to declare her brother’s role earlier was grounds for “grumpiness” and had resulted in her receiving a verbal warning from governor Mark Carney, but was not a “hanging offence”.

While the committee does not have the power to force Ms Hogg to resign, its report will be almost impossible for the bank to ignore.

In 2011 Dame Janet Finch withdrew as a candidate to be the chair of the UK Statistics Authority after a gruelling pre-appointment hearing in front of the public affairs select committee.