The Liberal Democrats have announced plans to abolish the Treasury and replace it with a new Department for Growth, which would be based in Birmingham. The proposal, unveiled by deputy leader Daisy Cooper, aims to shift the UK economy away from what she described as a short-termist 'Treasury brain' mindset that stifles long-term growth.
Speaking at UK Finance in the City of London, Cooper argued that the Treasury is 'over-centralised' and disconnected from the real economy, forcing businesses to navigate multiple government departments. The new department would merge large parts of the Treasury with the Department for Business and Trade, with a mandate to boost living standards and end the cost of living crisis.
A smaller Department for Public Expenditure would oversee departmental spending and ensure value for money. Cooper also made an open appeal to moderate Conservatives, saying 'moderates are welcome' in her party after Kemi Badenoch's comments on centrist ideas. The policy marks the Lib Dems' biggest move since the 2024 general election, addressing criticisms of a cautious approach under Ed Davey.
