The new Liz Truss administration has fired the Treasury’s senior official.
Chancellor Kwasi Kwarteng fired Sir Tom Scholar as one of his first actions after entering office last week.
Having previously decried “Treasury Orthodoxy,” Ms. Truss’ decision to fire Sir Tom on the first day of her new administration was seen as an indication of her resolve to reorient economic policy.
However, the move has drawn criticism as officials struggle with how to end a winter of unhappiness amid skyrocketing prices and bills.
Lord Butler, a cabinet secretary under Margaret Thatcher, Sir John Major, and Sir Tony Blair, expressed concern that the new administration’s activities would “corrupt” the political system.
The peer vehemently decried the dismissal, calling it “extremely rare and very regretful.”
He said on BBC Radio 4’s The World This Weekend that “if there was ever a moment we needed experience and consistency, which is what the Civil Service gives, it is now.”
We now have a new sovereign and a new prime minister, and this system desperately needs the glue to keep it all together.
I believe politicians are starting to lose sight of the constitution. Her Majesty’s government is represented by the civil service.
A new administration wouldn’t take office and immediately fire the chief of the defence staff, who is in charge of Her Majesty’s armed forces.
“I believe they are acting inappropriately against the Civil Service,” I said. They will get weaker, but it will also degrade our system since one of the major benefits of having a committed, independent civil service would be jeopardised.
Sir Tom Scholar, a 30-year Civil Service veteran, said that after leaving his position as permanent secretary, he would continue to support the department “from the sidelines.”
In the meantime, the department will be run by acting permanent secretaries Beth Russell, director general of revenue and welfare, and Cat Little, director general of public expenditure.
Sir Tom, according to Mr. Kwarteng, exits the Civil Service with “the greatest honour” after assisting the Treasury and the Government through “many economic crises” such the financial crisis and the COVID-19 epidemic.
Lord Butler’s remarks were mirrored by Lord O’Donnell, his successor as cabinet secretary, who told Times Radio that she needed to appreciate the Civil Service and treat all public officials with respect.
‘And to be honest, the beginning hasn’t been as courteous as one would want, with the firing of Tom Scholar.
“The Civil Service must support you if you want to succeed as Prime Minister.” They are eager to assist the nation’s democratically elected officials. However, there should be mutual respect.
She has to realise that firing someone without cause and without notice—especially someone who is highly regarded by chancellors of all political parties—is not the way to win the Treasury and Civil Service’s respect.
Lord Butler countered that while Mrs. Thatcher had come to No. 10 with a comparable commitment to reform, she had not felt the need to fire the top officials involved.
The Treasury’s permanent secretary continued to serve and provide stability. That didn’t stop the Thatcher administration from shifting economic policy’s course.