Treasury tells Michael Gove not to expect lots of new cash for levelling up

Published

3 years ago

September 17, 2021

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Michael Gove’s new levelling up department is being warned not to expect a large injection of new cash in the spending review hours after Boris Johnson called levelling up “our fundamental project”, Sky News understands.

Mr Gove‘s department, which covers housing, the Union, local government and elections, will be expected to negotiate its three-year budget on the basis of the bid put together by Robert Jenrick, who was sacked on Wednesday.

Although there is some scope for changes, Sky News has learnt the Treasury is playing down the ability of incoming cabinet ministers to radically rewrite their departmental spending bids or ask for dramatically more.

One Whitehall source told Sky News that Mr Gove should therefore not be expecting an above average settlement.

A leading Tory MP, Jack Berry, said that the Treasury needed a new approach to levelling up or the Tories risk losing voters in the North.

Sky News has learned that the Treasury asked cabinet ministers to submit bids for the spending review at the start of the week, hours before the reshuffle was due to begin.

Now they are telling all departments they are still expecting to negotiate in some cases on the basis of bids submitted by cabinet ministers who lost their jobs or changed roles – which include Dominic Raab from the Foreign Office, Robert Buckland who has gone from Justice and Mr Jenrick from the Ministry of Housing.

This has caused surprise in parts of Whitehall, who point out there is a long way to go until the October 26 review and the arrival of a new Chief Secretary to the Treasury, Simon Clark, may change calculations.

Mr Gove may also benefit from machinery of government changes, such as the possible move of the Union unit to Mr Gove’s new ministry, which means Mr Jenrick’s budget submission cannot be adopted completely like for like.

Having only been in place 48 hours, it is thought to be too early for Mr Gove to have decided what his budget needs and priorities will be.

This morning the prime minister used the first post-reshuffle cabinet meeting to emphasise the importance of levelling up.

He said: “By cutting crime, by making our streets safer across the country, by improving the quality of people’s lives, putting in fibre optic gigabit broadband sprouting through everybody’s homes, by tackling the skills deficit across our country, by giving people opportunity across the whole of the UK… combined with local leadership – we are going to fulfil our fundamental project of uniting and levelling up the entire country… because that is what our mission is.”

Departments are already facing a squeeze.

Overall departmental spending will rise 4% a year in real terms (which is a 6% rise in cash terms before accounting for inflation) but a large share of this will be taken up by the Health and Social Care spending meaning other departments will get less.

Whitehall was braced for a tricky settlement as Rishi Sunak attempts to reclaim the mantle of fiscal discipline for the Conservative party after spending hundreds of billions on the pandemic.

Jake Berry, chairman of the Northern Research Group of Tory MPs who want greater commitment to levelling up, told Sky News: “I think what we’re learning is that the Treasury is yet to be convinced that levelling up is a government priority.

“Levelling up is about devolving power away from London, that tends not to be an agenda that the Treasury backs.”

Asked why there is resistance, he said: “They regard it as expensive.

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“Many of these projects in the North don’t stack up on traditional value for money spending.

“It’s just for that exact reason these communities need investment.

“The Treasury doesn’t need to so much tweak the Green Book.

“As they’ve done over the last few years – they need to rip it up, throw it in the shredder, and then chuck the waste away.

“They need a whole new approach.

“In all fairness to Mr Gove he has a track record of delivering… he has a track record of taking on what he’d call ‘the blob’ – and in this case the Treasury is the blob.”

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University tuition fee rise branded ‘morally wrong’ – as Education Secretary Bridget Phillipson defends increase

Published

7 hours ago

November 5, 2024

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University tuition fee rise branded 'morally wrong' - as Education Secretary Bridget Phillipson defends increase

The education secretary has said no decision has been made on whether university tuition fees will increase with inflation each year.

Bridget Phillipson has announced the maximum cap on tuition fees in England will go up in line with inflation from April 2025.

The cost of tuition will increase by £285 to £9,535 next year – the first rise in eight years.

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There will also be a rise in maximum maintenance loans to increase in line with inflation, giving an increase of £414 a year to help students with living costs.

However, the education secretary did not say if the rise would continue after that.

Speaking to Sky News’ Politics Hub with Sophy Ridge, Ms Phillipson admitted she did not know what would happen with tuition fees after April 2026.

“We’re going to look at this and the maintenance support and the sector overall as part of the reform that we intend to set out in the months to come,” she said.

“So no decision, no decision has been taken on what happens beyond this.”

She said the government will be looking at “what is required… to get our universities on a more sustainable footing… but also to deliver a better deal for students as a part of that”.

The minister said she also “intends to look at” uprating the threshold at which students need to start paying tuition fees back in line with inflation.

Jo Grady, general secretary of the University and College Union (UCU), said the tuition fee rise was “economically and morally wrong”.

She said: “Taking more money from debt-ridden students and handing it to overpaid underperforming vice-chancellors is ill conceived and won’t come close to addressing the sector’s core issues.”

The National Union of Students (NUS) said students were being asked to “foot the bill” to keep the lights and heating on in their universities and to prevent their courses from closing down amid the “crisis”.

Alex Stanley, vice president for higher education of the NUS, said: “This is, and can only ever be, a sticking plaster.

“Universities cannot continue to be funded by an ever-increasing burden of debt on students.”

Universities have been making up for fees being frozen since 2017/18 by taking in international students who pay more.

However, student visa numbers have fallen after the previous government made it more difficult for them to come to the UK recently, so universities can no longer rely on the fees.

Politics

These crypto ETFs are ‘call options’ on the US elections

Published

9 hours ago

November 4, 2024

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<div>These crypto ETFs are 'call options' on the US elections</div>

The US presidential race could determine the fate of more than half a dozen proposed crypto ETFs.

Politics

Priti Patel makes comeback in Kemi Badenoch’s shadow cabinet

Published

10 hours ago

November 4, 2024

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Priti Patel makes comeback in Kemi Badenoch's shadow cabinet

Dame Priti Patel has made a comeback as Kemi Badenoch has appointed her shadow foreign secretary, Sky News understands.

Ms Badenoch, who became Conservative leader on Saturday, started officially appointing her shadow cabinet on Sunday evening.

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On Monday afternoon, the two biggest jobs were confirmed, with former home secretary Ms Patel being given the shadow foreign secretary role.

Former shadow work and pensions secretary Mel Stride, who ran in the Tory leadership race and is considered more of a moderate than Ms Badenoch, has been made shadow chancellor.

Robert Jenrick, who lost out to Ms Badenoch, is the new shadow justice secretary, sources told Sky News.

Earlier in the day, Laura Trott, who served as chief secretary to the Treasury under Rishi Sunak, was appointed shadow education secretary.

The new Tory leader made her first appointments on Sunday evening ahead of her new top team meeting for the first time on Tuesday.

Now the Conservatives are in opposition, the shadow cabinet’s role is to scrutinise the policies and actions of the government and to offer alternative policies.

Nigel Huddleston and Dominic Johnson, junior ministers under Mr Sunak, were appointed joint chairmen of the Conservative Party.

The role involves overseeing the party’s headquarters, where staff and committee members have their offices.

Essex MP Dame Rebecca Harris was confirmed as chief whip after the interim chief whip Stuart Andrew said she was replacing him.

She will be responsible for ensuring Tory MPs attend and vote in parliament as the party leadership desires.

Former foreign secretary James Cleverly, who came third in the leadership race, said on Friday he would not be joining Ms Badenoch’s top team.

Ex-prime minister Mr Sunak, his former deputy Sir Oliver Dowden, ex-chancellor Jeremy Hunt and former Brexit, health, and environment secretary Steve Barclay have all said they will be joining him on the backbenches.