London Daily

Focus on the big picture.
Wednesday, Dec 10, 2025

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
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
×