London Daily

Focus on the big picture.
Thursday, Dec 04, 2025

Tom Scholar, permanent secretary to the Treasury, sacked by Liz Truss

Tom Scholar, permanent secretary to the Treasury, sacked by Liz Truss

Government likely to seek replacement amenable to its plans of economic growth through tax cuts

Liz Truss has underlined her apparent intention to rip up recent economic policies by removing Tom Scholar as the most senior civil servant in the Treasury, despite warnings that his experience could prove vital this winter.

Before becoming prime minister, Truss railed repeatedly against what she called “Treasury orthodoxy”, notably the predictions that her plan to make large and unfunded cut taxes could raise inflation and increase interest rates.

It is understood that Scholar, who worked closely with David Cameron and Gordon Brown before taking the top Treasury job in 2016, was told he would be going on Tuesday after Kwasi Kwarteng was appointed at Truss’s chancellor.

The news was confirmed on Thursday with a brief announcement from the Treasury. It said: “The chancellor has asked the cabinet secretary to begin the recruitment process for a new permanent secretary to the Treasury to succeed Tom Scholar.”

Beth Russell, the director general of tax and welfare, and Cat Little, the director general of public spending, will lead the department as acting permanent secretaries in the meantime.

Scholar said Kwarteng had decided it was time for “new leadership”. He wished the department “all the best for the times ahead”, adding he would be “cheering on from the sidelines”.

It appears likely that Kwarteng and Truss will be seeking a top official more amenable to their plan to try and increase economic growth by aggressively cutting taxes, with the intention that higher growth will then boost government coffers.

This has prompted scepticism among economists, with the perception that a similar view might be held among officials in the Treasury.

The departure of Scholar will leave Whitehall without a highly experienced voice who had worked with Cameron as his principal adviser on the European Union.

When he took over at the Treasury, he replaced Nicholas Macpherson, who had spent 11 years in the job, under three chancellors.

In a tweet, Macpherson called Scholar “the best civil servant of his generation”, adding: “Sacking him makes no sense. His experience would have been invaluable in the coming months as government policy places massive upward pressure on the cost of funding. As Gordon Brown used to say: “They’re not thinking.”


Kwarteng would have been Scholar’s sixth chancellor: he worked briefly with George Osborne, then Philip Hammond, Sajid Javid, Rishi Sunak, and then, very briefly, Nadhim Zahawi.

The son of Sir Michael Scholar, the former Whitehall permanent secretary, Scholar was among a group of Treasury officials whose careers were nurtured in their 30s by Brown while he was chancellor and then later prime minister.

He served as Brown’s principal private secretary before moving to Washington as the UK representative at the International Monetary Fund and the World Bank. He then worked as chief of staff for Brown, and returned to a senior post at the Treasury at the height of the banking crisis.

In 2013, Scholar led a taskforce of top UK civil servants dispatched to Cyprus to advise the stricken island how to handle its financial crisis.

Newsletter

Related Articles

0:00
0:00
Close
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
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
×