The Treasury select committee will not have the power of veto over the appointment of the chief executive of the Consumer Protection and Markets Authority.
Treasury Financial Secretary Mark Hoban made the announcement in response to a written question from Conservative MP for West Worcestershire Harriett Baldwin which asked if proposals for the power would be brought forward.
He wrote: “The appointment will be made in line with the normal process for appointing FSA executives, which does not include a role for the Treasury select committee.”
The committee does not currently have the power of veto over the head of the Financial Services Authority but last July it was awarded such a power by the Chancellor over the head of the Office of Budget Responsibility.
Treasury select committee member and Conservative MP Mark Garnier says it is not a surprise despite the OBR veto.
He says: “It is not surprising and I am happy the committee does not have this power. The first veto power the committee got was over the OBR. There seems to be a bit of a habit brewing of people saying that the TSC should have veto powers over all sorts of things, but having the veto over the head of the CPMA would be unusual.”
He adds: “The other thing is that if you give the committee too many powers of veto it itself becomes very powerful and you cannot have one organisation taking on too many powers.”