London Daily

Focus on the big picture.
Thursday, Oct 01, 2026

Sunak’s letter to PM puts desire to crack down on Covid subsidies on record

Sunak’s letter to PM puts desire to crack down on Covid subsidies on record

Latest move by chancellor to wrest back some control of public finances will raise eyebrows in Westminster
Last August, it was “eat out to help out”, launched by a beaming and maskless chancellor in Wagamama on London’s South Bank, carrying plates of noodles to nonplussed customers. This year, it’s “fly out to help out”.

With just a few weeks left of the school summer holidays, the airline and tourism industries are facing another bleak summer. As the threat of possible new restrictions hangs over holidays, and the costs of testing prove prohibitive for many families, many have decided to take their vacation in the UK, even though travel restrictions will ease for fully vaccinated travellers from 16 August.

Sunak is preaching to the choir in his letter to the prime minister demanding an even greater relaxation of travel rules to save summer holidays abroad, despite notes of caution from scientists and some in the Department of Health about the perils of possibly importing new variants.

Boris Johnson is not known for his caution and is expected to reopen green list travel, dropping most requirements for all travellers, to many holiday destinations on Thursday.

But it is the style, not the content, of the letter to Johnson from Sunak that will raise eyebrows in Westminster. Johnson will already be well aware of his chancellor’s views on the subject, but the leaked letter is a marker that Sunak wants his views on the record.

It is the latest in a series of interventions Sunak has made to try to wrest back some form of control over economic policy and the public finances after a torrid 18 months where the fiscally hawkish chancellor has been forced to pay people’s wages to keep business afloat.

He is saying that more subsidy is out of the question, having already made clear that Johnson cannot spend his way out of the pandemic in order to boost the economy and rebuild his popularity.

Take the stalemate over social care: Johnson could have announced a plan to overhaul the system this summer, taken the credit and allowed Sunak to have the row over unpopular tax rises this autumn. But the Treasury firmly put its foot down, saying any new policy had to show how it would be paid for.

A rise in national insurance is clearly the Treasury’s preferred policy, widely briefed ahead of the anticipated announcement.

That plan, which would hit lower-paid workers the hardest and would break the Tory manifesto, has been met with suspicion by the cabinet and Tory MPs, some of whom accused the Treasury of trying to pressure the prime minister into it. Though more are likely to agree with Sunak’s intervention on travel, many are starting to see a pattern.

Sunak is highly ambitious and is widely seen as Johnson’s natural successor. He is the second most popular Tory in the party after Liz Truss, according to ConservativeHome’s latest poll, which has seen Johnson’s personal popularity fall by 36 points. Though denied by No 10, there are longstanding rumours that Johnson may be keen to depart Downing Street and make money on the circuit after winning another election.

In the short term, there are numerous tests to come for the shaky partnership between Nos 10 and 11 this autumn, including rows over tax, a spending review where the chancellor will want to tighten the purse strings, as well as the threat of industrial action from medics and other public sector workers over pay.

These are some of the dangers ahead for Johnson, but they are also traps for his chancellor. So far Sunak’s reputation has been flying high among voters – for paying their wages – and among fellow Tory MPs, who see him as the bastion against Covid restrictions. If Sunak insists on higher taxes and pay cuts, that popularity could wane.
Newsletter

Related Articles

0:00
0:00
Close
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
×