Boris Johnson’s chief adviser has chosen a policy specialist in housing and left-behind towns to head up the new “joint economic unit” between Downing Street and the Treasury that will shape the upcoming Budget.
Dominic Cummings has selected Liam Booth-Smith to lead the team of advisers co-ordinating economic policy between Number 10 and Number 11 after Sajid Javid abruptly resigned as chancellor on Thursday. He quit after refusing the prime minister’s ultimatum to replace his aides with a joint team and was replaced by Rishi Sunak.
The new unit, which is expected to be physically based in No11, is seen by some Whitehall insiders as a power grab by the prime minister to tighten his grip over fiscal policy. Mr Cummings, the prime minister’s chief adviser, has picked trusted aides from several departments to lead on economic policy.
Robert Jenrick, communities secretary, said Mr Johnson was the only person in charge of shaping how his top team functioned. “The prime minister is very much in charge. He chooses the top team and how they are structured,” he told the BBC.
“We in government are completely focused on getting things done, delivering on the priorities of the public — not on special advisers or how government is run internally,” Mr Jenrick said.
One government insider said: “The aim of the new unit is to deliver the budget and deliver it well,” adding: “We want to make sure everything is joined up so we can be much more collaborative and singing from the same hymn sheet.”
While some ministers have privately speculated that the structure of a joint adviser team with Downing Street might be rolled out to other departments, Downing Street officials said there were no plans to go beyond the Treasury. One said Mr Cummings’ move was not about seizing power for Downing Street. “This is simply about making Number 10 and Number 11 more joined up.”
Allies of Mr Johnson cited the go-ahead for the High Speed 2 high-speed rail line this week as an example of why there needed to be closer co-ordination between both departments. “We were both on the same policy page, but Saj’s team were briefing out he was in favour of HS2 before the prime minister had said anything publicly about his decision. It looked disjointed, hence why we need a better approach,” the individual said.
Those with knowledge of the joint economic unit said that Mr Johnson was eager to recreate the close working relationship between former prime minister David Cameron had with chancellor George Osborne when all major policy decisions were made in tandem. Rishi Sunak, the new chancellor, has accepted this approach to policymaking.
Mr Booth-Smith, who joined the prime minister’s inner circle last summer is a housing specialist, which is expected to shape his thinking for the upcoming Budget scheduled for March 11. He was previously director of policy at the Policy Exchange think-tank,
Mr Booth-Smith recently hired one of his former colleagues, Jack Airey, as a Number 10 adviser on housing policy. “He is absolutely passionate about building beautiful homes and solving the housing crisis,” said one friend. Mr Booth-Smith grew up on a council estate, which has driven his interest in housing and improving the physical environment.
After Policy Exchange he worked at Localis, a think-tank specialising in housing led by Eddie Lister, who is also a senior adviser to Mr Johnson. One government official said “he is razor sharp, politically savvy and rated highly by every cabinet minister I know”.
Mr Booth-Smith will be joined in the new economic unit by Nerissa Chesterfield, who will focus on media relations, and Rob Oxley, Mr Johnson’s press secretary, who is on secondment until after the Budget. Mr Oxley is then expected to move to the Foreign Office to advise foreign secretary Dominic Raab.
Douglas McNeill, who works in No10, will be working on policy for the budget. Further appointments to the unit, including economic advisers, are expected in the coming days.
