The treasury

Covid has doomed the public finances — not just because the cost of mitigating it has been high in itself but because it has normalised high public spending. When you have just allocated £37 billion to Test and Trace and spend £54 billion on the furlough scheme, a £106 billion high-speed railway to Manchester and Leeds looks relatively good value — at least taxpayers will have something lasting for their money. And who would even notice if the budget for that railway quietly crept up by a further £1.7 billion? That is exactly what has happened today. The construction costs of the first phase of the railway, from London to

Following Tuesday’s bleak headlines over the effect the coronavirus lockdown could have on the economy, the Chancellor attempted to strike an optimistic note in the daily government press conference. With the OBR projection suggesting three months of lockdown followed by a partial easing could lead to the UK economy shrinking by 35 per cent, Sunak said that while the prediction was worrying the figures were in some ways unsurprising as these are unprecedented times. However, the Chancellor stressed that it was simply ‘a possible scenario’ and it ‘may not even be the most likely’.  Sunak said the important takeaway is that the economy would likely ‘bounce back quickly’ once measures are lifted. He said

As the dust settles, it is clear that the big story of the reshuffle is that Boris Johnson has created the most powerful central government operation in living memory. He has yoked together Number 10, the Treasury and the Cabinet Office. As I say in the Sun this morning, no department or agency will be able to resist the power of this new centre. The rationale behind this move is simple. Boris Johnson’s view is what is the point of being in power if you are not actually in charge. He wants to bring an emphatic end to a decade of weak government. He believes that this new set up

Why has Sajid Javid quit as Chancellor? Because he wanted his political advisers to be his own courtiers and servants, as is the tradition, and not those of Dominic Cummings, the prime minister’s chief aide. To the contrary, Johnson agreed with Cummings that Javid’s current special advisers should be dismissed and replaced with new advisers who would answer and report to Cummings. The PM and Cummings believe the success of the government in these challenging times require Downing Street and the Treasury to act, as far as possible, as one seamless unit. According to one of Johnson’s close colleagues, the current Prime Minister admires how Cameron and Osborne acted as