The Chancellors: Steering the British Economy in Crisis Times

by Howard Davies

When the Treasury lost control of interest rates to the Bank of England in 1997, its status looked under threat. However, it quickly reasserted its power by dominating policymaking across Whitehall and diminishing other ministries in the process. It also successfully fought off attempts by Prime Ministers, from Blair to Johnson, to cut it down to size.

In this fascinating insider account, based on in-depth interviews with the Chancellors and key senior officials, Howard Davies shows how the past twenty-five years have nonetheless been a roller-coaster ride for the Treasury. Heavily criticized for its response to the global financial crisis, and for the rigours of the austerity programme, it also ran into political controversy through its role in the Scottish referendum and the Brexit debate. The Treasury’s dire predictions of the impact of Brexit have not been borne out. Redemption of a kind, though a costly one, came from its muscular response to the COVID crisis.

Anyone with an interest in economic policymaking, in the UK and elsewhere, will find this a valuable and entertaining account.

Genres: Politics, Economics, Finance

232 pages, Kindle Edition

Published May 12, 2022

Reviews

[Wej · Rating 5 out of 5]

This book is a gem for readers interested in the workings of fiscal and, to a lesser extent, monetary policy. Davies, a former Treasury and Bank of England insider, describes the leaders of these institutions from circa 1997 till 2022.
The book is a collection of chapters on key economic themes that span the years, but also more recent additions like Brexit or Scottish Referendum. Each chapter consists of attributed and non-attributed comments from ex-Chancellors (excluding those of 2021/2022) and other senior economic policy makers.
This is an exceptionally good book providing a peak behind the curtains. It’s great for HMT- and Bank-watchers, but will be tedious for the general audience. ‘The Chancellors’ was published before the turmoil caused by Kwarteng so we won’t know how the Treasury worked during that time. We will need to wait for the next volume.

[Kathleen Dunmore · Rating 5 out of 5]

Fascinating. The author's account of how the Treasury operates and of its relationship with the Bank of England, HMRC and the PM is gripping and, having dealt with Treasury officials for over 40 years now, I can vouch it is also true to life. Quotes from individual Chancellors add depth and give valuable insight into the political dimension. Worth reading and rereading. Kathleen Dunmore

[Ben Clark · Rating 4 out of 5]

Very niche but interesting nonetheless. Probably much more interesting if you're well-versed in the political architecture of the UK government.