London Daily

Focus on the big picture.
Friday, May 29, 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
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×