Mervyn King refuses pay rise
Mervyn King, the governor of the Bank of England, has confirmed his intention to refuse a pay rise during the next two years. Despite the fact he received a 2.5% increase on 1 July 2009, taking his salary to £305,368 he is joining David Cameron's appeal for restraint in the public sector. It is hoped that many other figures in the UK public arena will follow suit and create momentum behind moves to reduce the UK public sector budget.
Mervyn King is set to play a more prominent role under the Conservative government compared to the previous Labour government. It is no secret that Gordon Brown had attempted on numerous occasions to jettison Mervyn King from his position at the Bank of England only to be thwarted by the recession and the credit crunch. However, Mervyn King's power may not be as great in the future as many had assumed because the Financial Services Authority looks likely to remain despite the fact that the Conservative party had indicated it would be closed down or moved under the control of the Bank of England.
It is unclear how the UK regulatory framework will change under the Conservative/Liberal Democrat coalition although this will become clear in due course.
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