Dealing with David Cameron’s multiple texts, WhatsApp messages, emails and phone calls “did not take up a very significant part” of the Treasury’s time, Chancellor Rishi Sunak has told MPs investigating the Greensill lobbying scandal.
But, in a letter to MPs on the House of Commons Treasury committee, Mr Sunak dismissed the impact that Mr Cameron‘s actions had on his department’s decisions over Greensill Capital.
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Cameron questioned over messages sent to ministers
The chancellor wrote to the committee following the release of their report on the lobbying scandal in July.
In his response to the committee, Mr Sunak said: “The report expresses doubt that Mr Cameron’s lobbying did not result in the Treasury treating Greensill differently.
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“On this I can only reiterate the evidence we have previously given to the committee.
“Greensill and supply chain finance did not take up a very significant part of my time, nor of [Treasury second permanent secretary] Charles Roxburgh’s, nor of the department’s overall, particularly compared with other COVID interventions.
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“In line with the committee’s report, it was right to listen to Greensill’s initial proposal, which we promptly rejected.
“Given the acute financing needs of SMEs at the time, it was also right to invest a small proportion of time and resource in exploring the option of an industry-wide solution for supply chain finance.”
The chancellor also told MPs of his belief that the Treasury “acted entirely appropriately in relation to Greensill” and that he was “proud” of his department’s response to the COVID crisis.
Among Mr Cameron’s contacts with government ministers and officials were 14 text messages to the Treasury’s most senior civil servant Tom Scholar; eight WhatsApp messages and two phone calls to Mr Sunak; six texts, one call and one email to Treasury ministers John Glen and Jesse Norman; and two WhatsApp messages to an aide of Mr Sunak.
The Treasury committee previously published a vast number of Mr Cameron’s contacts, but some of Mr Scholar’s replies to the former prime minister were unable to be found when subsequently requested under Freedom of Information laws.
The Treasury said this was due to Mr Scholar’s mobile phone being reset after the device was automatically locked when an incorrect password was entered several times.
It was later revealed the Treasury had wiped all data from more than 100 government-issued mobile phones in 2020 because their users entered the wrong pin.
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Greensill paid ‘far more’ than PM salary
In its report on the Greensill scandal, the Treasury committee urged the government to review “its policies and use of information technology to prevent the complete deletion of government records by the misremembering of a password to a phone”.
But, in his response to the MPs’ report, Mr Sunak suggested his department would not be making any changes.
“While we accept that, in exceptional circumstances, this security feature could potentially result in the loss of information that may not have been transferred to the departmental record, in the vast majority of cases, all the substantive information held on the device will also be held on Treasury systems,” he wrote.
“Given that the aim of the Treasury’s policy is to ensure that all data is protected in circumstances where a device is either lost or stolen (where it could potentially be in the possession of malign actors), we consider that the balance of risk falls decidedly in favour of retaining the security feature in order to prevent unauthorised access to Treasury information or data, which is often particularly high-profile and sensitive.”
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.
“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.”
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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”.
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University tuition fees to increase
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.