They cannot in and of themselves say why the Brown Government came out so strongly
against the Bank of England’s recommendation of full banking sector compartmentalization.
Yet they are highly suggestive. If New Labour welfare policy had only been about
preserving the additional levels of service provision introduced during its second term,
then the rebuttal of the Governor’s view could be attributed solely to the desire to protect
the gross value of tax receipts delivered by the City. However, the transformative agenda
also embedded in New Labour welfare policy must in addition keep other explanations
in play.