"The Bank must now ensure that the new rules are followed in both letter and spirit by all staff across the organisation."
In response to questioning from the Treasury Committee in July, the Bank of England has brought forward the review, which places a cap on hotels and daily meal allowances.
Donald Kohn and Anil Kashyap, members of the Bank’s Financial Policy Committee, came under fire earlier this year after reportedly spending £390,000 on travel expenses, including more than £11,000 on a single flight.
Under the new policy, employees must book travel, accomodation and flights through the Bank's provider wherever possible, and must provide a "clear, justifiable business rationale for expenditure", which will be subject to approval by an ‘approver’.
The Bank of England said that breaches of the new policy may result in "more serious consequences, including disciplinary proceedings".
Nicky Morgan, chair of the Treasury Committee, said: “Given the staggeringly high level of expenses claimed by some members of the Bank of England’s policy committees, the review of its expenses policy is welcome. The Bank must now ensure that the new rules are followed in both letter and spirit by all staff across the organisation.
“The Treasury Committee will examine the Bank’s expenses, as well as the review itself, in detail when we take evidence from the Court of the Bank of England in the New Year.”
