What exactly is the proposed Department for Growth?

It is a Lib Dem idea to replace the Treasury with a Birmingham-based department that merges business and trade functions. The goal is to set policy around long-term prosperity, with multi-year planning, skills, exports, and private investment at the centre. Daisy Cooper argues this structure would reduce short-term fiscal moves.

Does this mean the Treasury will be scrapped soon?

No. This is an opposition proposal, not government policy. Any change would need an election win and major restructuring. Investors should view it as a medium-term scenario that shapes expectations around fiscal rules, regional investment, and possible bank windfall-tax decisions affecting UK markets.

Why does this matter for financial services?

A growth-first framework could change expectations for bank taxation, lending conditions, and dividends. Daisy Cooper has pushed debate on windfall taxes and long-term planning. Even without immediate change, these signals influence sector risk pricing and how analysts model UK lenders, insurers, and asset managers listed in London.

Which sectors could be most affected if it advances?

Likely touchpoints include banks, construction, engineering consultancies, and exporters. A Birmingham HQ for a Department for Growth would point to more regional projects, potentially shifting pipelines and procurement. Investors should track manifesto pledges on capital allowances, business rates, and infrastructure to gauge winners and risks.

Law and Government

February 12: Lib Dems Plan to Replace Treasury With Growth Dept

ByDanny Kontos February 12, 2026February 12, 2026

On 12 February, Daisy Cooper set out a bold UK Treasury reform idea: scrap HM Treasury and create a Birmingham-based Department for Growth that merges business and trade. The Lib Dem economic plan aims to curb short-term tax grabs and push long-term prosperity. While not government policy, it reframes debate around fiscal rules, regional investment, and possible bank windfall taxes. For UK investors, it signals potential shifts in capital allocation, sector outlooks, and policy risk across financial services and regional infrastructure plays.