View all newsletters
Sign up to our newsletters

Support 110 years of independent journalism.

  1. Business
  2. Economics
21 July 2016

Cabinet audit: what does the appointment of Philip Hammond as Chancellor mean for policy?

The political and policy-based implications of the new Chancellor of the Exchequer.

By Stephen Bush

Even officials with leftwing politics hoped that Theresa May would keep George Osborne in place at the Treasury, for two reasons: firstly because he is a considerate boss, and secondly because his exit from frontline politics likely means the end of a 19-year period of dominance by the Treasury, in which, whether under Gordon Brown, Osborne or even under Alistair Darling, whoever has been in office, the Treasury has been in power.

But Philip Hammond was very much the second choice, way ahead of any of the possible figures. Hammond was the biggest beast to back May’s candidacy and was rewarded for the Treasury brief that coalition denied him (he had shadowed the post of Chief Secretary to the Treasury in opposition but the mechanics of the coalition meant the post had to be given to a Liberal Democrat). Before May’s accession to the premiership, he had already lined up with her on negotiations with the European Union and Osborne’s deficit targets (now shelved).

Hammond comes in with the economy looking pre-recessional and with Britain’s future participation in the single market in some doubt. (Hammond has publicly said Britain ought to remain in the single market above all else – May is more concerned about immigration, while the Brexit-backing ministers are divided.)

What ought he to do? The big task is to get the construction industry back on its feet. Happily, although the decline in Britain’s credit rating has made borrowing more expensive, low interest rates at home and abroad make the case for fiscal stimulus stronger than ever, and mean the government can borrow on the cheap. Launching programmes of housebuilding, transport infrastructure and clean energy would be good ways to try to avert or at least ride out any economic shocks. (From an economic perspective albeit not an environmental one, it makes sense to approve new runways at Heathrow and Gatwick, two “shovel-ready” infrastructure projects that have private money behind them.)

But the big victory that Hammond could achieve at the Treasury would be to defeat the Brexiteer ultras and keep Britain in the single market. 

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Content from our partners
Development finance reform: the key to climate action
Individually rare, collectively common – how do we transform the lives of people with rare diseases?
Future proofing the NHS

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com Our Thursday ideas newsletter, delving into philosophy, criticism, and intellectual history. The best way to sign up for The Salvo is via thesalvo.substack.com Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team. The best way to sign up for The Green Transition is via spotlightonpolicy.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU