Tories support Bank chief over backing for Union

THE Conservatives last night intervened in support of Mervyn King, the governor of the Bank of England, in the escalating row over his support for Scotland's place within the Union.

Mr King was criticised by the SNP after making a keynote speech which he used to give his clear backing to the Union.

He praised the "prosperous Union" between Scotland and England, which had brought wealth to both countries.

Alex Salmond, the SNP leader, claimed that, as a public servant, Mr King should not have tackled such a sensitive political subject

and "should perhaps be reminded of the necessity of remaining politically neutral".

But yesterday Mark Hoban, the shadow financial secretary at Westminster, said Mr King was right and should not be deflected from stating his views.

"I can understand this is a sensitive time, but I do not think anybody can dispute that he is right to say the Union is a good thing for the economy," he said.

"The Bank of England is at arm's length from the Treasury. It is independent and so it was reasonable for him to express the views he did."