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Lib Dems Propose Scrapping Treasury for Birmingham-Based Department for Growth

The plan aims to shift economic decision-making toward long-term growth by separating tax policy from spending control.

Overview

  • Deputy leader Daisy Cooper unveiled the party policy proposal on Feb. 11, outlining a new department that would set taxes, lead economic strategy, set fiscal rules and approve major infrastructure projects.
  • The proposed Department for Growth would absorb the Department for Business and Trade and be headquartered in Birmingham to signal a push to rebalance the economy beyond London.
  • A separate Department for Public Expenditure would be created to oversee departmental budgets and ensure value for money.
  • The announcement, hosted by industry group UK Finance, prompted questions about the venue choice, and one Liberal Democrat MP said they “despair” at the policy.
  • The party cites projections such as closing Birmingham’s productivity gap by about £12bn a year and raising around £25bn for public services, and notes expert and historical precedents for splitting fiscal roles.