Gordon Brown faces new allegations
Updated on 14 April 2007
Gordon Brown is facing new allegations that he disregarded Bank of England advice when selling half the country's gold stocks.
Senior figures at Threadneedle Street reportedly expressed misgivings about the decision to auction 400 tonnes of bullion between 1999 and 2002.
Officials reportedly warned the Treasury in correspondence that there was a risk of losing money because the price of gold was at a low level.
However, there was allegedly no formal consultation and the Chancellor went ahead with the move.
Since the auctions the value of gold has trebled, allegedly leaving the public purse £2 billion worse off.
But the Treasury has issued a robust denial of the claims, insisting the decision had been scrutinised carefully and the taxpayer received value for money.
A spokesman said: "This is a decision the Government made in the proper way.
"It has been examined by the National Audit Office, who concluded that the Treasury had met its objective selling in a 'transparent and fair manner while achieving value for money'."
The Bank - which has managed the UK's gold reserves for more that 300 years - stressed it had nothing to do with the auction decision.
A spokeswoman said: "We acted solely as an agent, and the decisions were taken by the Treasury."
Mr Brown came under heavy fire last month after documents relating to controversial 1997 reforms of pension tax were released.
They indicated that the Treasury was warned the move could leave a "big hole" in pension schemes.
He has insisted he still believes the right decision was taken.
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