Chief Secretary to the Treasury, Darren Jones, has stated that the UK economy remains affected by the aftermath of Liz Truss’s economic decisions, as market responses to the recent budget signal continued caution.
Jones emphasized that the UK is “in a very different world” compared to the turmoil following Truss’s 2022 mini-budget. Recent budget announcements, however, have seen a slight increase in government borrowing costs and a dip in the pound’s value.
Reflecting on the economic fallout from Truss’s tenure, Jones told Sky News, “I think we’ve all got PTSD from Liz Truss.” He highlighted how Truss’s government dismissed the Treasury’s permanent secretary, bypassed the Office for Budget Responsibility (OBR), and implemented £45 billion in unfunded tax cuts, which set off a wave of market instability.
“In stark contrast to that period, we now have verified reports from the OBR showing that our fiscal rules are being met ahead of schedule, reflecting a strong and consolidated approach to public spending,” Jones noted.
Responding to questions about recent market responses to the budget, he said it is normal for markets to react to new economic data, adding, “I understand why you asked the question, because everybody was impacted by the economic management during the Conservative government.”
Jones also addressed scrutiny over the government’s decision to pay £950 per day to David Goldstone, the new head of the Office for Value for Money (OVFM). When asked on LBC about Goldstone’s rate, Jones argued that the return on investment from improved spending oversight would justify the cost. “It’s fair to compensate professionals for their expertise,” he said, explaining that Goldstone’s daily rate is competitive within industry benchmarks.
Goldstone’s extensive experience includes roles as a non-executive director at the Submarine Delivery Agency and HS2 Ltd. He has previously served as the CEO of the Restoration and Renewal Delivery Authority for parliament and as COO of the Ministry of Defence. His notable achievements include overseeing the UK government’s £9.3 billion investment in infrastructure for the 2012 Olympics.