Lib Dem MP Voices Despair Over Party's Radical Treasury Overhaul Plan
A Liberal Democrat MP has publicly expressed despair over their party's controversial proposal to scrap the Treasury and establish a new "Department for Growth" based in Birmingham. The criticism emerged just hours after the policy was unveiled, highlighting internal divisions within the party.
"At a Time When Government is Imploding"
The dissenting Lib Dem MP, who chose to remain anonymous, told The Independent: "At a time when the government is imploding and people are crying out for serious policies, we announce this." This blunt assessment underscores the timing concerns surrounding the announcement, made during a period of significant political instability.
Daisy Cooper's Vision for Economic Reform
Liberal Democrat Treasury spokesperson Daisy Cooper presented the plan at a London press conference on Wednesday, 11 February 2026. She proposed merging the Department for Business and Trade into a "new growth department, recognising the central role of British business in driving growth."
Cooper argued that the current Treasury structure is fundamentally flawed, stating: "The Treasury does too much. Fiscal policy, economic policy and controlling government spending. In most other countries, these roles are split up."
She elaborated on her critique, explaining: "The Treasury enables governments to go for short-term tax grabs that suit political cycles over the need for long-term growth. And the Treasury is disconnected from the real economy. Despite holding all the economic power, the Treasury isn't responsible for policies on business or trade."
Proposed Structural Changes
The Liberal Democrat plan involves creating two separate entities:
- A new Department for Growth based in Birmingham
- A smaller department for public expenditure to oversee departmental spending and ensure value for money
Cooper justified the Birmingham location by arguing that closing the productivity gap between the UK's second biggest city and London would add £12 billion annually to the economy. She claimed this geographical shift would help rebalance economic power across the country.
Promised Benefits and Economic Impact
The MP for St Albans outlined several potential benefits of the proposed restructuring:
- Boosting investment in the NHS, renewable energy and defence sectors
- Making economic growth a national priority to "get Britain growing again"
- Improving UK-EU relations through better economic coordination
- Resetting the relationship between government and business
- Raising approximately £25 billion annually to address public service funding and the cost of living crisis
Cooper summarised her position by stating: "In short, the Treasury is over centralised, it drives short-term thinking, and it simply isn't designed to deliver the long-term economic growth that we need."
Internal Party Tensions Surface
The immediate criticism from within Liberal Democrat ranks suggests the policy may face significant internal opposition before it even reaches public debate. The dissenting MP's comments reveal concerns about both the substance of the policy and its political timing during a period of government instability.
This internal disagreement highlights the challenges facing opposition parties when proposing radical institutional changes, particularly when such proposals involve dismantling long-established government departments like the Treasury.
