George Osborne has the instincts of a barber surgeon. The Conservative party’s shadow chancellor, who may be running the Treasury after the general election that is due by next summer, wants to hack up the Financial Services Authority and to stitch most of its responsibilities on to the Bank of England. His objectives are reasonable, but he proposes much more brutal saw-work than is strictly necessary or wise.

Under Mr Osborne’s proposals, the Bank of England would be responsible for almost all financial supervision, possibly even including markets. Meanwhile, a new consumer protection agency would take on most of the few remaining roles outside the proposed Threadneedle Street empire.