London Daily

Focus on the big picture.
Saturday, Aug 22, 2026

Sunak goes long on support for jobs – but says little about NHS or inequality

Sunak goes long on support for jobs – but says little about NHS or inequality

Analysis: Not quite the ‘same old Tories’, but ‘levelling up’ clearly has a narrow meaning for the chancellor


Rishi Sunak both is, and isn’t, a typical Tory: he’s an extravagantly rich, public school-educated former hedge fund manager; but also a coke-swigging Star Wars fan with a slick Twitter game who works from home in a hoodie. And his budget on Wednesday was, and wasn’t, a typical Tory budget.

Labour has repeatedly accused the Conservatives in recent weeks of wanting to return to “business as usual”. But the political and economic terrain has been changed dramatically by the past 12 months, in ways that are likely to be long-lasting.

Sunak’s statement was shot through with reminders of the extraordinary support the government has put in place during the Covid crisis.

Once you’ve promised to do “whatever it takes,” to support businesses and subsidise jobs, it’s politically all but impossible to “pull out the rug”, as the prime minister put it recently.

When the chancellor tried to turn off the furlough scheme last autumn, it was the resurgence of Covid that stopped him – but also the expectations of millions of workers whose jobs had been kept afloat by the taxpayer.

Perhaps stung by that experience, the chancellor has now decided to “go long,” as he called it, extending many of the support schemes for months, well beyond the end of the government’s planned “roadmap”.

The Treasury now puts the total cost of emergency Covid measures at a historically extraordinary £352bn.

And even once the worst of the pandemic is over, while Sunak is very keen to redraw exactly the political dividing line that served George Osborne so well in 2010 and 2015 – sensible Tories vs spendthrift Labour – he is doing so in a different way.

While public sector spending cuts, many of them hitting welfare claimants who could ill bear them, were Osborne’s weapon of choice for balancing the books, Sunak claimed the Tories are now the party of public services.

So big businesses will pay, through higher corporation taxes, with smaller firms carefully excluded to dampen the backlash from Tory MPs, and middle-earners will be caught up in what economists call “fiscal drag” – paying more tax because thresholds are not moving up in line with inflation.

Cutting corporation tax was a trademark policy for the Osborne-Cameron government, symbolising what was then the Conservatives’ ideal of global competition.

Increasing it back to 2010 levels has been a Labour policy for years – and once Sunak’s increases are implemented, the overall tax burden in the UK will be back at levels last seen when Roy Jenkins was chancellor in the 1960s. Hardly the “same old Tories”.

Indeed, the relatively muted reaction from the Tory back benches underlined the fact that it’s not just the economic context that has changed, but the shape of the Conservative party.

Philip Hammond and many of his fellow fiscal hawks have either been swept out of parliament or relegated to the very back benches – and many of the noisiest voices in the parliamentary party are those of the new MPs from the red wall seats, for whom small-c fiscal conservatism is less of a cherished cause.

Many of them were buoyed by the announcement that they may receive a handout from the new “levelling-up fund”. Labour dismisses this as pork barrel spending, shovelled out to favoured constituencies – but also privately concede it is hard to counter.

Yet there were aspects to Sunak’s approach that were depressingly familiar from the past decade of Conservative governments.

The £20-a week universal credit increase has been retained, but only until September, when removing it will still increase child poverty and hit cash-strapped households hard.

Overseas aid is still being cut; unspecified cuts in departmental public spending of up to £4bn are now pencilled in for future years; and public sector pay is being frozen for many workers, as Sunak announced last autumn.

And as Keir Starmer rightly identified in his response to Sunak’s statement – one of the toughest gigs for an opposition leader – many pressing issues were completely missing from the chancellor’s statement – social care, the NHS, inequality, insecure work.

Johnson and Sunak have a specific, and narrow idea of what “levelling up” and “building back better” means: infrastructure projects, business investment, low-tax buccaneering freeports.

To counter it, rather than caricature them as textbook Tories, Starmer will need to fill out his own, as yet rather thin, picture of what post-pandemic Britain could look like.

Newsletter

Related Articles

0:00
0:00
Close
The rise and fall of Hui Ka Yan, China’s richest man
Woke: Britain Considers Plain Packaging for Cigars as Specialist Shops Warn of Industry Collapse
Britain's Public-Service Productivity Remains Below 2019 as £80 Billion Output Gap Fuels WFH Debate
Mandelson Epstein Case in Jeopardy as U.S. Files Stay Out of Reach
Prince Harry and Six Others Ordered to Pay £9.5 Million After High Court Defeat
Bank of England Holds Interest Rate at 3.75% as Inflation and Energy Risks Persist
UK AI Security Tests Find Autonomous Agent Attempting Malicious Code Injection
UK Economy Grows 0.4% in Second Quarter Amid Global Pressures
UK Joins European Allies in Condemning Israeli Settlement Plans in West Bank E1 Area
Multiple People Killed in A66 Collision Near Middlesbrough Involving Police Vehicle
UK Government Holds First National Day for Victims and Survivors of Terrorism
UK Met Office Warns of Severe Autumn Storms as Strong El Niño Follows Historic Drought
Petrol Bombs Set Luxury Cars Alight Outside Birmingham Wedding as Police Hunt Three Men
Bitcoin Surges Toward $80,000 as Short Squeeze and ETF Inflows Ignite Crypto Rally
Prince Harry and Co-Claimants Ordered to Pay £9.5 Million Toward Daily Mail Publisher’s Legal Costs
Prince Harry and Meghan Markle Reportedly Plan Return to Britain With Their Children
UK Court Ruling Threatens Deportation Plans for Potential Trafficking Victims to Albania
Kemi Badenoch Presses UK Government for Decisions on Rosebank and Jackdaw Oil Fields
UK Foreign Affairs Committee Chair Calls for Ban on Goods from Occupied West Bank
Andy Burnham Government to Place Civil Servants Directly in English Mayoral Offices
Met Office Warns Major El Niño Could Bring Stormier, Wetter Autumn to UK
UK Economy Gains Unexpected Momentum Ahead of Andy Burnham Government’s First Budget
Twenty-Nine US States Take Meta to Trial Over Alleged Child Addiction on Instagram and Facebook
Former Scottish National Party Executive Peter Murrell Jailed for Five Years Over £400,000 Embezzlement
Moderna and Merck's Personalized Cancer Vaccine Succeeds in Historic Late-Stage Melanoma Trial
Prince Harry and Meghan to Move Back to Britain With Their Children
England and Wales Have Fewer Than 1,800 Prison Places Left for Men
Royal Navy to Accelerate DragonFire Laser Deployment Against Growing Drone Threat
Northern Ireland Approves Five Hundred Million Pound Belfast Harbour Expansion
Great British Railways Takes Full Control of Avanti West Coast as Rail Nationalisation Reaches Final Stage
UK AI Safety Institute Calls for Mandatory Security Audits of Advanced AI Models
Scotland Secures Three Billion Pounds for Floating Offshore Wind Hub in Aberdeen
Government Overrides Local Councils to Approve Green Belt Housing Across Southern England
UK and EU Move Toward Mutual Recognition of Food Standards to Ease Cross-Channel Trade
Government Plans Multibillion-Pound Private Healthcare Expansion to Cut NHS Surgical Backlogs
Bank of England Signals Faster Rate Cuts as Inflation Falls Below the Two Percent Target
Suspected People Smuggler Arrested After Investigation Identified Him
Children's Doctors Warn That Vaping Can Lead Young People to Smoking
Hundreds of Thousands of Students Receive GCSE and Vocational Results Across England, Wales and Northern Ireland
Here Is What Can Never Happen in Your Country: Taiwan Is Giving Money to All Its People Because It Collected Too Much Tax
UK Inflation Rises to 2.9% as Energy Bills Jump
UK Issues New Conduct Guide for Asylum Seekers on Consent and Respect
Moderna Shares Surge After Positive Personalized Skin Cancer Trial Results
UK Markets Watch US National Debt Surpass Forty Trillion Dollars
UK Broadcasters Urge Government to Invest in Digital Participation and Broadband
CVC Capital Partners and Standard Life Launch Two Billion Pound Pension Risk Transfer Venture
UK Private Sector Productivity Growth Accelerates in Second Quarter
UK Foreign Secretary Ed Miliband Condemns Israeli E1 Settlement Tender
UK Watchdog Investigates Trainline, Virgin Atlantic and RED Driving School Over Hidden Fees
Prince Harry and Meghan Markle Plan Move to Private Home Outside London
×