London Daily

Focus on the big picture.
Saturday, Oct 10, 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
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
×