The former deputy governor of the Bank of England says the future Prime Minister will have to keep Jeremy Hunt as chancellor.
Prof Charlie Bean has been telling BBC Radio 4’s World At One programme that appointing a new chancellor would “generate volatility”.
He says any change to Hunt’s economic programme would be “problematic”,
“It is a significant tying of hands.”
Prof Bean praises Hunt for doing “quite a good job” of calming the markets and setting out a broad direction by “unwinding two-thirds” of the cost of Kwasi Kwarteng’s mini-budget which caused financial chaos last month.
He says there could be some “tweaking at the margins” of Hunt’s plans – but it would be “problematic” if the new PM came in and said they wanted a more significant change in the economic package ahead of the financial statement on 31 October.