Philip Webster, Political Editor
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Tony Blair claims that he was a driving force behind independence of the Bank of England from the 1980s, challenging the conventional wisdom that the idea was solely Gordon Brown’s.
In an interview with David Aaronovitch, of The Times, for a three-part BBC documentary, the former Prime Minister said that he decided before he reached No 10 to make the change, although he did not claim that he had thought of it before Mr Brown.
In unedited extracts of the BBC interview, which are not being broadcast but have been seen by The Times, Mr Blair said that he “always thought it was the right thing to do”.
The announcement by Mr Brown the Tuesday after Labour won power in 1997 has always been credited to him, and a pamphlet written in 1992 by Ed Balls, soon to become his economic adviser, has been seen as the main inspiration behind the decision.
Blairites have often privately challenged the view that it was a Brown-Balls decision, even though they have accepted that it was Mr Brown as Shadow Chancellor who prepared the ground and who later put the change into effect.
Mr Blair said in the interview: “I remember having discussions with Tory ministers when I was a Shadow Treasury spokesman, saying, ‘You know, the obvious thing is to go for Bank of England independence’.” Mr Blair said that he used to talk to people such as Gavyn Davies, the economist and former chairman of the BBC, about the economics of it. They told him that they thought it was the right decision.
“And so I thought it was the right thing to do. Obviously, Gordon was completely up for that as well so there was no difficulty between us.”
Asked who mentioned it to the other first, Mr Blair replied: “It was part of the discussion very early on that I had with him.”
In the extract of the interview that appears in tomorrow night’s programme, Mr Blair was asked why he and Mr Brown had not consulted the Cabinet. “If Gordon had been against it, that would have been a different matter, but he wasn’t. He was absolutely for it. Myself and the Chancellor were absolutely on all fours together.”
A source close to Mr Brown pointed out that many politicians, including Tory Chancellors, had since revealed that they favoured bank independence when in office, but could not put it into effect. Sources close to Mr Blair and Mr Brown said that the two discussed the issue with aides in 1995. On election day they decided to announce the move within days. The day after the election they met again, with aides and officials. It was decided then not to consult the Cabinet.
Sources close to Mr Blair denied that he was claiming credit for the decision. One said: “They agreed the policy before the election and afterwards and it was for Gordon to announce.”

I decided on it
Now firstly could you just take us through how the Bank of England decision was made?
Blair: This has been something that I’d really decided on and obviously we, Gordon and I, talked about it very closely together going back I guess probably a couple of years maybe even more actually . . . and I thought, I’d always thought it was the right thing to do, I mean I remember having discussions actually with I think Tory ministers you know when I was a Shadow Treasury spokesman back in the 1980s saying you know the obvious thing is to go for Bank of England independence because . . .
How did the idea work its way through into the Labour Party, how did you get it taken on?
Blair: Well I remember because I used to meet groups of people to talk about the economics of it, Gavin Davies and people like that who used to tell me that they thought it was obviously the right thing to do. And so I was always very you know I thought it was, it was the right thing to do . . . I mean obviously you know Gordon was completely up for that as well so there was no difficulty between us over the decision.
You don’t remember who mentioned it to who first?
Blair: I mean I don’t but it was part of the discussion very early on that I had with him and I mean there was never a difficulty really about it
Source: The Blair Years, unedited extracts
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Give me strength!!! This, from the man who's overseen so much destruction of what was once so laughingly refered to as our democracy...........please!!!!!
From the rubble and ruins of his premiership...and soon to be polictical party.....this man has got to have been the worst ever Prime Minister in our history. So what if it was he and Gordy (sends shivvers down my spine everytime I mention the mans name) who came up with the idea first!
The legacy of this man's term in office has been to see the destruction of democracy and the curtailment of our civil liberties.
He's destroyed what was once a kindof ok place to live!
David Downes, Chester, UK
Oh dear, the Tony v Gordon feud is still alive and well. The problem is nobody listens to Tony any more, and Gordon is fast losing credibility.
Neil, Gloucestershire, England
So that is why Goldman Sachs had been such big buyers of UK Gilt Futures 2 days before the BOE independence announcement, because Blair had been talking to their economist Gavin Davies.
John Moore, Bucks, England
You don't know what you've got til it's gone.
Dale Bilson, Repton, Derbyshire
As I recall, it was his idea - and a very good one.
I'm a bit sick of this trend for Blair-bashing.
Joe, Manchester,
Quite honestly I haven't the slightest interest in whether it was Blair or Brown that wanted an independent BoE. Its all very boring, of little concern to the majority in the country and after their performance of the Northern Rock fiasco leaves me convinced they're as incompetent as the government. In any respect, Blair is now a inconsequential has-been who is of little interest to the masses despite his wifes attempts to screw more money on the lecture circuits. Who cares & whose interested , just let the man fade into his naturally obscure place in history.
Mike, Alicante, Spain
Bank of England independence was a policy adopted by the Liberal Democrats in 1995. It was prominently featured in their 1997 general election manifesto and argued for during the campaign. You won't find it in Labour's document and the Tories were openly hostile to it anyway.
The best Tony Blair can come up with is that he and Gordon Brown agreed it before the election but didn't have the guts to tell anyone about it or campaign on it.
Robert, Hampshire,
Hiya :)
The Bank Of England was privatized for the same reason Air Traffic Control and the Post Office are being privatized
Because the EU is creating a single state
Democracy any1 :)
LE X
edward, Leicester, UK
Well Brown steals Tories policies, why not Blairs as well.
John, Clacton on Sea-Essex, UK
Clutching at straws fior his 'Legacy File'? he should wait for the outcome of ther Northern Rock fiasco before boasting too loudly. His true legacy is 0 and falling!
david, Uzes, France
A pointless programme to come.A three part documentary love-in with David Aronovitch.Though I don't suppose Blair is going to talk to anyone who will ask any pointed questions or who is not "on side" for laying out the legacy.
Given the blood and treasure Blair spent,the rank incompetence of his terms in office,the spin and mendacity,the messianic rush to his war, it's amusing that the puff for this documentary is to take credit from Brown for the one useful thing achevied (untill Northern Rock tested it ).
robert everitt, wolverhampton,
Tony Blair is proof that the justice system is malfunctioning...
William Knapp, Canada,
I think we're slowly but surely beginning to see a bit of a trend here, Gordon jumping on Tony's bandwagon and taking credit for his success.
I don't actually understand why Blair stood down? Brown isn't half the man he was.
Frank Yoxalll, London,
David Aaronovitch was probably in seventh heaven interviewing his great hero Blair.There can't be too many left who still believe in him.9/11 was the turning point in the Blair premiership.Prior to that he had mainly concentrated on domestic issues and can claim notable successes with independence for the Bank of England and the Northern Ireland peace agreement.Unfortunately after 9/11 he thought he could put the world to rights and neglected the country that had elected him.He allowed Brown far too much scope and then ruined his reputation by foolishly getting involved in Iraq.
Regrettably history will probably record the Blair premiership as a wasted opportunity.
Dave Robins, West Drayton, England
Can you imagine any chancellor voluntarily giving up control of interest rates?
Colin , Shrewsbury,
You so it WAS you to blame for this so called BOE 'independence' (the greatest of the great lies of the last 10+years)- I thought I smelled fish.
Ripsnorter (ex-pat), Malaga, Spain
The first moves towards the independence of the Bank of England were made by Lawson under the Thatcher government and the necessary preparation was made by him but never implemented until Brown became Chancellor.
Here is a reference released by the Treasury on 7 March 2005:
1988-93: Treasury papers on an independent Bank of England
During early 1988 the Chancellor of the Exchequer, Nigel Lawson, requested officials to study the case for, and practicalities of, giving the Bank of England statutory independence.
The Treasury reached an agnostic verdict, but Lawson nonetheless prepared a memorandum for the Prime Minister urging an independent Bank. The initiative came to nothing, because MT rejected the proposal. But after she left No.10 work continued on Bank of England independence on the initiative of officials, preparing in case ministers asked for a reexamination of the issue. In the event that moment came only with the arrival of the new Labour Government in May 1997.
Sam Bartlett, Port El Kantaoui, Tunisia
Is that the same Bank of England independence that had been in the Lib Dem manifesto seveal months before Blair "had the idea", or a different one?
Joe, brussels,
So the world leader who has probably done to face down fascism since WW2, isn't welcome in his own country? Does the left have any principle left?
mark mcfarland, hongkong,
Tony obviously misses the limelight. He should be reminded that he got the country into this mess and he should now focus on his new role.
Hamad Lone, London, England
Its a good idea to have an independent Bank of England. However, wouldn't it be a reasonable idea to have at least one member of the committee, who didn't have vast amounts of money invested in the UK residential property market? How about that homeless surfer dude from Venice Beach, LA who's fast becoming a fashion icon?
Kit Carson, Carson Pass,
Sorry Tony but we are glad to see the back of you. Please don't show your face in this country again, Go back to America or Rome either one will make you a lot more welcome than you are here.
andrew , Belfast,