Tories contributed to financial uncertainty – top civil servant

The new chancellor’s claim to have inherited a black hole, and the choices she makes about how to fill it, are likely to dominate politics for the coming months and years.

Mr Hunt was furious with Ms Reeves when she made the claim of a £22bn gap in spending plans in July, accusing her of a “shameless attempt to lay the grounds for tax rises”.

The chancellor and shadow chancellor will face off in the Commons later for the first time since that ill-tempered exchange.

The Conservatives argue they left Labour a growing economy and that if there is a spending gap it is partly generated by the government’s decision to approve recommendations for above-inflation pay rises for public sector workers.

An ally of Mr Hunt said they were unsurprised that the head of the civil service was supporting the current government’s position. The civil service is required to serve the government of the day.

A spokesperson for Mr Hunt told the BBC that Mr Case’s letter in fact vindicated him on the question about what civil servants had previously told Parliament about spending.

The spokesperson said: “This letter raises some serious questions for the government. If the government considers that they have put misleading information before Parliament, why was Parliament not informed in advance when the legislation was laid? The government had plenty of time to tell the House, yet they failed to do so. Why?”

In his response to Mr Hunt, the cabinet secretary said “preserving the honesty and integrity of the civil service is of the utmost importance”.

Mr Case has been in the role since September 2020 and is now serving his fourth prime minister.

He has at times been an unusually controversial figure, facing scrutiny over his role in the Downing Street parties saga and over messages he exchanged with ministers during the pandemic.

He took a medical leave of absence for a period last year and is widely expected to leave the civil service in the coming months.

A spokesperson for the Cabinet Office said: “We don’t comment on leaks.”