London Daily

Focus on the big picture.
Friday, Feb 27, 2026

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
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Sir Jim Ratcliffe, co-owner of Manchester United, comments on immigration in the UK.
Bill Gates, the UN and the WEF are attempting to construct "a giant digital gulag for all of humanity" via digital ID, CBDCs and vaccine passport infrastructure.
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
German Chancellor Friedrich Merz Secures Pledge from China for Greater Imports of Quality Goods
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
United States National Parks See Noticeable Drop in Visitors from Canada, U.K. and Australia
×