Commons 'should chose Bank governor'

The Tories today called for the Commons to be given greater power over the running of Britain's economy - including the right to approve the appointment of the Governor of the Bank of England, the deputy governor and the members of the Monetary Policy Committee which sets interest rates.

The proposal came from shadow chancellor Michael Howard as he signalled a big re-think in his party's own economic policy. In the first of a series of speeches, Mr Howard began by heaping praise on Gordon Brown for giving independence to the Bank.

In the text of a speech being delivered today, the shadow chancellor confesses he was wrong to oppose that decision in 1997 and says: "The change is a change for the better."