Amid fears of the UK on the brink of recession, the aftershocks of Tom Scholar’s sacking as permanent secretary have left many civil servants feeling raw and worried about the leadership of the Treasury. They said it was evidence he was willing to emulate Liz Truss, who earlier this week said she was willing to be unpopular for the sake of what she believed were right changes for the country. A Treasury official said the building was “still angry and really shocked” by Scholar’s sudden departure and really lacked his gravitas as Kwarteng rushed into a completely new economic direction and sweeping tax cuts without the full costings being made public. . Another said staff were “very, very upset” at the way Scholar was treated – with some even saying they were “in tears” and what they believed was a “shock and awe” approach to enforcement. A third Whitehall insider suggested Scholar could have “started a fuss” about Kwarteng pushing ahead with major tax changes despite a lack of details on costing, as the Office for Budget Responsibility is not expected to publish a forecast on Friday. “It seems a bit like we’re avoiding marking our own work,” sighed one Tory MP. The roles previously held by Scholar and his former deputy, Charles Roxburgh, remain unfilled. Two general managers have been selected to lead the department. A former Treasury spokesman said the friendliness of Kwarteng and Truss was a problem as there should be a healthy tension between the No 10 and No 11. Picture: Toby Melville/Reuters Giles Wynne, who was a special adviser to former chancellor Philip Hammond, recalled what Kwarteng was like when he was a parliamentary private secretary – a ministerial assistant meant to be their “eyes and ears” among their colleagues. “The leadership contest revealed a deep division in the party over fiscal policy that has been somewhat muted by other events,” Wynn said. “The chancellor will be key to healing this divide over time – and Kwasi will certainly be well aware of that.” Wynn added that keeping the party together would be “top of mind” for Kwarteng, but that the closeness between him and Truss spanning many years could make life more difficult for Treasury officials. “There needs to be a healthy tension between the prime minister and the chancellor,” he said. “It’s natural for a prime minister to want to spend money on things, but the chancellor needs to look long-term and not let the debt spiral out of control. You need a chancellor who will push back and fight that corner in those seats with the prime minister. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “Kuassi has a much closer relationship with the Prime Minister and now they can just pick up the phone and have a chat or meet for a drink and chat without policy officers in the room.” A former senior Treasury official also expressed concern about the backlash of the government’s tax cuts while the Bank of England raised interest rates amid fears the UK could slip into recession. “There will be significant concern about the strategy and where the public finances are headed,” they added. Another long-serving Treasury civil servant noted the elevation of the role of the City minister, who was detached from the financial secretary at the Treasury and instead handed over to the Chancellor of the Exchequer, Andrew Griffiths – boosting his job to compete for second most high profile in the ministerial group. “The city job being given to a more senior minister tells you a lot about Kwasi’s direction,” they said.
