Treasury

Budgets can be tricky things to manage. George Osborne saw two of his unravel in 2012 and 2016, over hot pasties and welfare cuts respectively, while his 2013 effort was derailed by the Evening Standard breaking its embargo. Thankfully Rishi Sunak has largely avoided such embarrassments in his three efforts so far. Helped by a legion of Rolls-Royce civil servants – and a savvy social media team – the Richmond MP has enjoyed favourable poll ratings off the back of his well-received statements, accompanied, as always, by carefully-crafted images depicting the Chancellor at his best. But it seems all that isn’t enough for the ambitious resident of No. 11. For Mr S has noticed that the

Is Rishi Sunak a low tax chancellor? He certainly likes to tell anyone who will listen that he is. Yet his actions tend to suggest the opposite. The tax burden is currently on track to reach its highest level since the early 1950s, and while Sunak unveiled one big tax slash in the Budget in the universal credit taper rate cut, the main thrust of Sunak’s announcements was spend, spend, spend. Tonight Sunak addressed Tory MPs at a meeting of the 1922 committee. After announcing £150 billion in extra public spending, Sunak sought to convince his party that, despite this, he was committed to lowering taxes. Having said in the chamber that

Which departments will fare the worst from this week’s Budget? It won’t be the Department for Health and Social Care. Over the past few days, new funding announcements have appeared in the papers meaning the NHS will be handed another £5.9 billion. That’s in addition to the £12 billion a year investment it will receive as a result of the health and social care levy. Meanwhile, Whitehall sources suggest that Michael Gove has had some luck in his push for more funds for the levelling up agenda. Where the mood music is less positive is education. When Sir Kevan Collins stepped down from his role as Boris Johnson’s education catch-up tsar over the

Has Rishi Sunak had to perform an embarrassing climbdown over an energy bailout? That’s the suggestion in the papers this morning as the Treasury considers formal proposals from the Business Secretary Kwasi Kwarteng to assist businesses struggling with the hike in fuel prices. It comes after a brutal briefing over the weekend in which a Treasury source suggested that Kwarteng was speaking out of turn when he suggested he was in conversation with the Chancellor over a financial package – adding that ‘this is not the first time the [business] secretary has made things up in interviews.’ Since then, Downing Street appear to have rowed in behind Kwarteng, with a

You know that mate of yours who is always boasting they pay way less for energy than you because they’re constantly surfing for the best deal on price comparison websites? Well they are still going to have the last laugh, even though the energy company that supplied them is going bust. That is because the energy secretary Kwasi Kwarteng promised today that he would protect consumers and keep the official cap on prices, which means that the amount your mate pays for energy will hardly go up at all. And they’ll probably end up paying what you are paying. But as if to rub salt into your wounds, it is

It’s silly season in Westminster – the period between different parliamentary terms dominated by frivolous news stories. And while July and August have tragically been enlivened by the collapse of Afghanistan, the acres of coverage devoted to Geronimo the alpaca typified a gloriously ignoble tradition of the British press. In such circumstances, Mr S thought it the perfect time to gather together a list of the silliest reasons why Freedom of Information (FOI) requests have been rejected, ahead of a forthcoming parliamentary inquiry into how Whitehall handles them.  The FOI Act was enacted in law in 2000 by the Blair government – a decision which prompted Tony lambasted in his memoirs, describing himself

‘We cannot allow debt to keep rising’, the Chancellor said to Parliament last week, repeatedly emphasising the need to ‘level’ with the public about the size of the national debt. Strange then that just days later it was revealed that ministers have been doing the opposite when it comes to the costs of the fashionable cause of ‘Net Zero’. Instead government officials deliberately hid ‘more realistic’ estimates which showed Net Zero would cost billions more than publicised, while agreeing amongst themselves that the predicted costs were ‘highly uncertain’.  These revelations came about after the Treasury was finally defeated in a two-year battle to prevent me seeing documents I’d requested under the Freedom

Boris Johnson’s search for a chief of staff to bring order to 10 Downing Street has proved so difficult that earlier this month civil war erupted in No. 10 after he offered the role to his longstanding director of communications Lee Cain. In the face of a backlash from figures including the Prime Minister’s partner Carrie Symonds and new press spokesperson Allegra Stratton, Cain ended up handing in his resignation — Dominic Cummings followed him out the door — and the search for a chief of staff continued.  Now Johnson has made his pick. Dan Rosenfield is the Prime Minister’s new chief of staff, beginning work in Downing Street next month before officially taking

There is a view that we don’t have to worry about the record debt the government has accumulated since coronavirus laid waste to our way of life and our economy. And in two senses I would half agree – though the other half of me is wracked with anxiety.  First, this is not a uniquely British problem; it is a problem of all developed economies. However, you should not underestimate the geopolitical significance of the explosion of debt in the rich West, because it represents by implication the fastest transfer of wealth and power to China and Asia in our lifetimes.  Second, there is the important counterfactual – namely what

Lockdowns are designed to temporarily delay the spread of the virus – but at what cost? This was the line of questioning that kicked off yesterday’s evidence session for the Treasury Select Committee, scrutinising the work HM Treasury has conducted in relation to lockdown. Chair of the committee Mel Stride asked Clare Lombardelli, Chief Economic Adviser to the Treasury, to comment on specific economic analyses conducted around lockdown restrictions, ranging from the closure of pubs, gyms and restaurants to ‘circuit breakers’ and working from home directives. It was quickly revealed that no analysis has been done. Stride’s interest stemmed from Sage meeting minutes dated 21 September, which referenced a ‘package

Just how bad will the Covid economic hit be? Today’s figures for the first quarter of 2020 show Britain’s economy shrunk by two per cent, but that takes into account just a few days of lockdown (and suggests that the recession started some time before). The March figure is more like it: despite only formally being in lockdown for eight days in March, the UK economy contracted 5.8 per cent that month alone. As Capital Economics puts it ‘in just one month the economy has tumbled by as much as it did in the year and a half after the global financial crisis.’ Yet some responses to today’s figures reveal a worrying degree of