No 10 slaps down Hammond with blast at ‘anonymous’ briefings after the Chancellor ‘threatens to QUIT’ over May’s plan to spend billions on legacy projects ahead of her departure
- Mrs May has unveiled plans to spend on education and mental health
- She is due to leave within weeks after a new Tory leader is chosen by the party
- Mr Hammond is understood to be so against the plans that he is prepared to quit
Downing Street hit back at Philip Hammond today after he reportedly said he was prepared to resign in a row over her decision to spend billions of pounds on cementing a political legacy.
The Prime Minister’s official spokesman blasted anonymous quotes from friends of the Chancellor in recent days after saying Theresa May retained full confidence in him.
Senior Government sources told the Press Association agency that tensions between Treasury and Number 10 officials have reached boiling point over her spending intentions.
Mr Hammond is understood to be so against the plans that he is prepared to quit the Government in what would be an extraordinary move just weeks before the PM leaves office.
But the PM’s spokesman said: ‘You have seen significant announcements made by the Prime Minister with full Cabinet support in recent days, including one today in relation to protecting consumer rights, one yesterday in relation to mental health and the commitment on climate change.’
Asked if Mrs May would like the Chancellor not to resign, the spokesman said: ‘It’s been quite hard keeping up with all the anonymous quotes from friends of the Chancellor in recent days.
‘But I would simply say he was in Cabinet this morning and offering his views across a wide range of topics.’
Philip Hammond made the comments after an event with Chinese vice-premier Hu Chunhua at Mansion House in the City of London
Tensions have surfaced over Mrs May’s intention to spend up to £9 billion per year over three years on education, totalling £27 billion, including plans to build new schools and pay teachers higher wages, the well-placed source said.
The Chancellor is thought to be particularly angry that the plans could tie the hands of her successor, which the source said was ‘immoral’ and ‘irresponsible’.
‘Everyone knows this Government is coming to an end and ministers are desperately trying to shore up their legacy by splashing the cash,’ they told the Press Association.
‘Not only is it immoral to take away the choices of the next PM, it’s irresponsible – especially as no-deal looms.
‘There are times it’s reached boiling point with the Chancellor prepared to just walk away.
‘No-one’s denying there are some spending pressures but these are decisions to be taken by a successor in the round – not wasted on frivolous vanity projects or an attempt to bind the hands of the next person by making three-year pledges on their behalf.’
With Mr Hammond almost certain to be replaced as chancellor by Mrs May’s successor any resignation would be largely symbolic.
Theresa May went to Southfields school in London yesterday to discuss her plans to improve mental health care with staff and students
A source close to the Chancellor added: ‘The Chancellor is 100 per cent dedicated to getting on with the day job – promoting economic stability and ensuring prudent public finances.
‘He has overseen great success with rising employment and wages and wants to see this continue.’
Number 10 is understood to be asking Mr Hammond to free up money from the £26.6 billion ‘war chest’ he set aside in case of a no-deal Brexit to fund the plans.
In the Spring Statement in March Mr Hammond said he would decide in the Spending Review how to share the proceeds from any Brexit ‘deal dividend’ – if an agreement passed the House of Commons.
A Downing Street source said: ‘It is a fact though that school funding in England is at its highest ever level – rising from almost £41 billion in 2017-18 to £43.5 billion by 2019-20.
‘But while there’s more money going into our schools than ever before, we know they face budgeting challenges.
‘The Education Secretary has been clear he will back head teachers to have the resources they need to deliver a world class education.’
Mrs May’s tenure in Number 10 will end next month, and she has already sought to define her legacy with pledges to tackle climate change, mental health and modern slavery.
On Monday she set out plans for new teachers to receive training on how to spot the signs of mental health problems in youngsters, under a plan to overhaul society’s approach to the issue.