Rishi Sunak has failed to give his backing to Sir Howard Davies, the embattled chair of NatWest Group, following the row over Nigel Farage’s bank account.
The prime minister was asked on Thursday whether he supported Davies remaining in place at the bank, after a dramatic 48 hours during which its chief executive, Dame Alison Rose, resigned after admitting to being the source of a BBC story about Farage.
Soon after Sunak’s comments it was announced that Peter Flavel, the chief executive of the NatWest-owned Coutts bank where Farage had his account, had also stepped down.
Since Rose’s resignation late on Tuesday night, pressure has built on Davies, who initially defended her actions but was forced to change tack after a last-minute intervention from Sunak and the chancellor, Jeremy Hunt. As the largest shareholder in the bank, the government’s opinion on its leadership carries even more weight than it might otherwise.
Asked whether he supported Davies remaining in post until next July, when he is planning to step down, Sunak said: “This isn’t about any one individual, it’s about values – do you believe in free speech and not to be discriminated against because of your legally held views?”
The prime minister added: “Do you believe in privacy, particularly on matters as sensitive as your financial information? Those are the values and questions at stake here and that’s why I said what I did.”
The bank has been under scrutiny for weeks after Farage alleged it had closed his account at its elite private bank Coutts because of his political views.
The BBC reported earlier this month that Coutts had closed the account because the former Ukip leader fell below its financial thresholds, but Farage later revealed evidence showing staff had talked at length about his politics before cutting him off.
Rose admitted on Tuesday night she had been the source for the BBC story. She was initially backed by Davies, who released a statement saying the bank would undertake an investigation but that she retained the full confidence of the board.
Government officials then told the bank that Hunt and Sunak had significant concerns about her behaviour, prompting a hastily arranged late-night board meeting at which it was decided Rose would step down.
Farage has since called for the resignations of Davies and the now-departed Flavel. Davies will present the lender’s annual financial results to shareholders on Friday.
Sunak’s failure to give the NatWest chair his explicit confidence will put further pressure on him to stand down before next July. However, one government source said ministers had no strong views on his position, and that the real object of ministerial anger had been Rose, after she admitted being the source of the BBC story.
