Mark Carney: Incoming Governor of Bank of England will get 250,000 accommodation allowance


New Canadian boss of Bank of England will get 250,000 UK accommodation allowance… on top of his 480,000 salaryMr Carney, 47, will replace Sir Mervyn King as the Governor in JulyHis total annual package will be 874,000 – 33 times the national average
Mr Carney is already earning 175,000 a year more than his predecessor
He is the first foreign appointment to the role and will relocate from Canada

|

UPDATED:

23:00 GMT, 19 December 2012

The new governor of the Bank of England will be given a housing allowance of 250,000 a year, pushing his total annual earnings towards 1million.

Canadian Mark Carney, who takes over from Sir Mervyn King on July 1, will get the extra cash on top of pay and perks worth 624,000.

It takes his total annual package before tax to 874,000 – six times more than the 142,500 Prime Minister David Cameron is paid and 33 times the national average of 26,000 a year.

Extra income: Canadian Mark Carney will receive 250,000 on top of his 480,000 salary for accommodation when he becomes Governor of the Bank of England

Extra income: Canadian Mark Carney will receive 250,000 on top of his 480,000 salary for accommodation when he becomes Governor of the Bank of England

The one-off cost of moving Mr Carney and his family to Britain has yet to be finalised and will also be covered by the taxpayer.

The housing allowance – agreed in
secret before Mr Carney was appointed last month but only made public
yesterday – will contribute towards a five-bedroom home for his wife and
four young daughters in central London.

The deal was a crucial part of the
effort to tempt the 47-year-old to leave his job as governor of the Bank
of Canada and move his family to Britain.

Mr Carney, hailed as ‘the outstanding
central banker of his generation’ by George Osborne, currently lives in a
spacious family home near the Bank of Canada headquarters in Ottawa.

But the housing deal – worth
1.25million over his five years as governor and enough to cover rent of
2,500 a week after tax – will alarm MPs when many households are
struggling to make ends meet. The Canadian – the first foreigner to run
the Bank of England since it was set up in 1694 – insisted on serving
for just five years instead of eight and will earn far more than Sir
Mervyn’s 305,000 a year.

Sir Mervyn King, who will stand down as Governor in June next year, said Mr Carney represents 'a new generation of leadership'

Outgoing: Sir Mervyn King, who will stand down as Governor in June next year, is on a considerably lower salary than Mr Carney

It is also thought that Mr Carney has
political ambitions and even thought about running for Prime Minister
in his homeland before accepting the Bank of England job.

The Canadian now faces a showdown with
MPs on the Treasury Select Committee in February in what will be his
first public outing in Britain since his appointment.

‘Colleagues will want to ask about
every aspect of his appointment including, no doubt, remuneration,’ said
Andrew Tyrie, chairman of the powerful committee of MPs.

Adam Posen, a former member of the
monetary policy committee at the Bank of England, has warned that Mr
Carney’s generous pay and perks means he could be seen as a ‘globe-
trotting corporate free agent’.

Mark Carney has been appointed as the next governor of the Bank of England in Threadneedle Street, London

Mark Carney has been appointed as the next governor of the Bank of England in Threadneedle Street, London

The package was signed off yesterday
by the non-executive directors at the Bank of England – a group which
includes chairman Sir David Lees, Sir Roger Carr, chairman of British
Gas owner Centrica, and Dave Prentis, general secretary of Unison.

Mr Carney will get a basic salary of
480,000, a cash allowance in lieu of pension of 144,000, and the
250,000 a year housing allowance – a total of 874,000.

John Mann, a Labour MP on the Treasury
Select Committee, said: ‘I think even by MPs’ standards it is a
remarkable amount of money to live on in London.

‘It is just comical that level of money.’

Mr Carney, who faces a UK tax bill of around 400,000 a year, has a British wife and intends to apply for British citizenship.

The pay of fellow Canadian Moya
Greene, who runs Royal Mail and last year earned a total package worth
1.1million, has also caused outrage.

Although she gets perks such as two return flights to Canada each year, she does not get a housing allowance.

WHAT CAN MR CARNEY GET FOR 250,000 A YEAR

After tax, Mark Carney will have a monthly housing allowance of 11,500 for his wife and four daughters. Here are some of the London properties he could rent:

Mr Carney could set up home in this beautiful seven-bedroom, regency period house and still have 2,000 each month to spare.

The Grade II listed townhouse, which costs 9,500 a month, is located in leafy Blackheath, south east London, and even has its own swimming pool.

Affordable: This seven bedroom home in Blackheath is well within his budget

Affordable: This seven bedroom home in Blackheath is well within his budget

For just slightly over budget (11,917pcm), the Carneys could live in the heart of London in this magnificent five bedroom house just a stone’s throw from Parliament Square, Buckingham Palace and St. James’ Park.

Luxurious: A bit over budget, but it's walking distance to Parliament

Luxurious: A bit over budget, but it's walking distance to Parliament

If the Carney family fancy rubbing shoulders with the rich and famous, they could rent this five-bed apartment in trendy St John’s Wood – a popular haunt of celebrities including Sir Paul McCartney and Kate Moss.

Furthermore, the property, which costs 10,834-a-month, is located on Abbey Road, close to the studios and zebra crossing made famous by the Beatles.

Plush: This pad is on Abbey Road, of Beatles album cover fame

Plush: This pad is on Abbey Road, of Beatles album cover fame

For 8,667-a-month, Mr Carney could opt for this five-bed family home, located close to picturesque Hampstead Heath, one of the most sought-after areas of London.

Location: This five bedroom house is in sought-after Beaumont Gardens in Hampstead

Location: This five bedroom house is in sought-after Beaumont Gardens in Hampstead

If Mr Carney wants to live within walking distance of the Bank of England, then he could chose this 10,000-a-month 18th century townhouse, which comes complete with a retractable glass room and contemporary internal ‘living wall’ of plants.

Desirable: Mr Carney might like this 18th century townhouse in Queen Anne's Gate

Desirable: Mr Carney might like this 18th century townhouse in Queen Anne's Gate