According to data obtained by the think tank Parliament Street through a Freedom of Information request, the Bank of England has significantly increased its IT budget to nearly £100 million, up from £87.7 million the previous year.
This represents a 12.6 percent increase in tech spending. It was revealed that the Bank allocated £48.9 million in salaries for its 704 IT staff, with the average wage in the tech team amounting to £69,000 per year. This average salary has remained static over the past five years despite inflation.
The Bank’s decision to boost its IT investment received mixed reactions from experts and commentators. Khalid Talukder, co-founder of DKK Partners, commended the move, emphasizing the importance of robust tech infrastructure for ensuring long-term monetary stability.
Simon Ward, CEO of Inspired Thinking Group, praised the Bank for its commitment to digital transformation, noting that increased IT investment will enhance organizational effectiveness, particularly in leveraging AI.
There were critics of the Bank’s spending spree. Patrick Sullivan, chairman of the Parliament Street think tank, likened the Bank’s expenditure to a “Kardashian-style spending spree,” criticizing Governor Andrew Bailey for not exercising restraint during tough economic times. He lamented that the Bank, once a symbol of prudence, now resembles a reality TV show.
Separate research revealed that the Bank awarded 4,460 staff with “performance awards” in the financial year ending in 2023, with some individuals receiving bonuses exceeding £10,000. Moreover, according to reports from earlier in March, over 500 employees earned salaries exceeding £100,000 in the financial year 2022-2023.