Chancellor of the Exchequer

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Chancellor of the Exchequer

Incumbent:
Alistair Darling
Took office: 28 June 2007

Style: The Right Honourable
Appointed by: Gordon Brown
as Prime Minister
First : Hervey de Stanton
(England only)
Formation: 22 June 1316
United Kingdom

This article is part of the series:
Politics and government of
the United Kingdom



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The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called The Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the Treasury in other nations. The position is considered one of the four Great Offices of State and in recent times has come to be the most powerful office in British politics after the Prime Minister. The office is the only remaining one of the four Great Offices of State to have never been filled by a woman.

The Chancellor of the Exchequer is now always Second Lord of the Treasury as one of the Lords Commissioners for executing the office of Lord High Treasurer. In the eighteenth and early nineteenth centuries it was common for the Prime Minister to also serve as Chancellor of the Exchequer if he sat in the Commons; the last Chancellor who was simultaneously First Lord of the Treasury was W.E. Gladstone in 1882. Formerly, in cases when the Chancellorship was vacant, the Lord Chief Justice of the King's Bench would act as Chancellor pro tempore[1]. The last Lord Chief Justice to serve in this way was Lord Denman in 1834.

The Chancellor is the third oldest major state office in English and British history, one which originally carried responsibility for the Exchequer, the medieval English institution for the collection of royal revenues. The Chancellor controlled monetary policy as well as fiscal policy until 1997, when the Bank of England was granted independent control of its interest rates. The Chancellor also has oversight of public spending across Government departments.

The office should not be confused with those of the Lord Chancellor or the Chancellor of the Duchy of Lancaster, both Cabinet posts, the Chancellor of the High Court, a senior judge, or the Lord Chief Baron of the Exchequer, a defunct judicial office.

The current Chancellor of the Exchequer is Alistair Darling.

Contents

[edit] Roles and responsibilities

The Treasury, Whitehall

A previous Chancellor, Robert Lowe, described the office in the following terms in the House of Commons, on 11 April 1870: "The Chancellor of the Exchequer is a man whose duties make him more or less of a taxing machine. He is entrusted with a certain amount of misery which it is his duty to distribute as fairly as he can."

[edit] Fiscal Policy

The Chancellor has considerable control over other departments as it is the Treasury which sets departmental expenditure limits. The amount of power this gives to an individual Chancellor depends on his personal forcefulness, his status with his party and his relationship with the Prime Minister. Gordon Brown, who became Chancellor when Labour came into Government in 1997, had a large personal power base in the party. Perhaps as a result, Tony Blair chose to keep him in his job throughout his ten years as Prime Minister; making Brown an unusually dominant figure. This situation has strengthened a pre-existing trend towards the Chancellorship moving into a clear second among government offices, elevated above its traditional peers, the Foreign Secretaryship and Home Secretaryship.

One part of the Chancellor's key roles involves the framing of the annual Budget, which is summarised in a speech to the House of Commons. Traditionally the budget speech was delivered on Budget Day, a Tuesday (although not always) in March, as Britain's tax year follows the Julian Calendar. From 1993, the Budget was preceded by an annual 'Autumn Statement', now called the Pre-Budget Report, which forecasts government spending in the next year and usually takes place in November or December. This preview of the next year's Budget is also referred to as the "mini-Budget". The 1997, 2001, 2002, 2003, 2006, 2007 and 2008 Budgets were all delivered on a Wednesday.

[edit] Monetary Policy

Although the Bank of England is responsible for setting interest rates, the Chancellor also plays an important part in the monetary policy structure. He sets the inflation target which the Bank must set interest rates to meet. Under the Bank of England Act 1998 the Chancellor has the power of appointment of four out of nine members of the Bank's Monetary Policy Committee - the so-called 'external' members. He also has a high level of influence over the appointment of the Bank's Governor and Deputy Governors, and has the right of consultation over the appointment of the two remaining MPC members from within the Bank. [1] The Act also provides that the Government has the power to give instructions to the Bank on interest rates for a limited period in extreme circumstances. This power has never been used.

[edit] Ministerial arrangements

At HM Treasury the Chancellor is supported by a political team of four junior ministers and by permanent civil servants. The most important junior minister is the Chief Secretary to the Treasury, a member of the Cabinet, to whom the negotiations with other government departments on the details of government spending are delegated, followed by the Paymaster General, the Financial Secretary to the Treasury and the Economic Secretary to the Treasury. Two other officials are given the title of a Secretary to the Treasury, although neither is a government minister in the Treasury: the Parliamentary Secretary to the Treasury is the Government Chief Whip in the House of Commons; the Permanent Secretary to the Treasury is not a minister but the senior civil servant in the Treasury.

The holder of the office of Chancellor is ex-officio Second Lord of the Treasury. As Second Lord, his official residence is Number 11 Downing Street in London, next door to the residence of the First Lord of the Treasury (a post usually, though not always, held by the Prime Minister), who resides in 10 Downing Street. While in the past both houses were private residences, today they serve as interlinked offices, with the occupant living in a small apartment made from attic rooms previously resided in by servants.

The Chancellor is obliged to be a member of the Privy Council, and thus is styled the Right Honourable (Rt. Hon.). Because the House of Lords is excluded from Finance bills, the office is effectively limited to members of the House of Commons.

[edit] Accoutrements of Office

[edit] Official Residence

The Chancellor's official residence is No. 11 Downing Street. In 1997, the then First and Second Lords, Tony Blair and Gordon Brown respectively, swapped apartments, as the Chancellor's apartment in No. 11 was bigger and thus better suited to the needs of Blair (who had children) than Brown who was at that stage unmarried. So although No. 11 was still officially Brown's residence, he actually resided in the apartment in the attic of No. 10, and Blair — although officially residing in No. 10 — actually lived in the attic apartment of No. 11.

[edit] Budget Box

The Chancellor traditionally carries his Budget speech to the House of Commons in a particular red briefcase. The Chancellor's red briefcase is identical to the briefcases used by all other government ministers (known as ministerial boxes or "red boxes") to transport their official papers but is better known because the Chancellor traditionally displays the briefcase, containing the Budget speech, to the press in the morning before delivering the speech.

The original Budget briefcase was first used by William Gladstone in 1860 and continued in use until 1965 when James Callaghan was the first Chancellor to break with tradition when he used a newer box. Prior to Gladstone, a generic red briefcase of varying design and specification was used. The practice is said to have begun in the late 16th century, when Queen Elizabeth I's representative Francis Throckmorton presented the Spanish Ambassador, Bernardino de Mendoza, with a specially constructed red briefcase filled with black puddings.[citation needed]

In July 1997, Gordon Brown became the second Chancellor to use a new box for the Budget. Made by industrial trainees at Babcock Rosyth Defence Ltd ship and submarine dockyard in Fife, the new box is made of yellow pine, with a brass handle and lock, covered in scarlet leather and embossed with the Royal initials and crest and the Chancellor's title.

In March 2008, Alistair Darling reverted to using the original budget briefcase.


[edit] Chancellors of the Exchequer of England, 1316-1327

Name Portrait Entered office Left office Political party
Hervey de Stanton 1316 1327


[edit] Chancellors of the Exchequer of England, c. 1558-1708

Name Portrait Entered office Left office Political party
Sir John Baker c. 1558 c. 1559
Sir Walter Mildmay 1559 1559
Sir John Fortescue 1589 1603
The Earl of Dunbar 1603 1606
Sir Julius Caesar 1606 1614
Sir Fulke Greville 1614 1621
Sir Richard Weston 1621 1628
The Lord Barrett of Newburgh 1628 1629
The Lord Cottington 1629 1642
Sir John Colepeper 1642 1643
Sir Edward Hyde 19 July 1642 1646
The Earl of Shaftesbury 13 May 1661 22 November 1672
Sir John Duncombe 22 November 1672 2 May 1676
Sir John Ernle 2 May 1676 9 April 1689
The Lord Delamere 9 April 1689 18 March 1690
Richard Hampden 18 March 1690 10 May 1694
Charles Montagu 10 May 1694 2 June 1699
John Smith 2 June 1699 27 March 1701
Hon. Henry Boyle 27 March 1701 22 April 1708


[edit] Chancellors of the Exchequer of Great Britain, 1708-1817

Robert Walpole, de facto first Prime Minister who also served as Chancellor of the Exchequer for more than 22 years. In this picture Walpole is wearing the Chancellor's robe of office.
William Pitt the Younger, Chancellor of the Exchequer for 19 years and 9 months, all but 9 months as Prime Minister simultaneously, and who introduced Britain's first income tax to pay for the Napoleonic Wars.
Name Portrait Entered office Left office Political party
Sir John Smith 22 April 1708 11 August 1710 Whig
Robert Harley 11 August 1710 4 June 1711 Tory
Robert Benson 4 June 1711 21 August 1713 Tory
Sir William Wyndham, Bt 21 August 1713 13 October 1714 Tory
Sir Richard Onslow, Bt 13 October 1714 12 October 1715 Whig
Robert Walpole 12 October 1715 15 April 1717 Whig
The Viscount Stanhope 15 April 1717 20 March 1718 Whig
John Aislabie 20 March 1718 23 January 1721 Whig
Sir John Pratt
(interim)
2 February 3 April 1721 Whig
Sir Robert Walpole 3 April 1721 12 February 1742 Whig
Samuel Sandys 12 February 1742 12 December 1743 Whig
Hon. Henry Pelham[2] 12 December 1743 8 March 1754 Whig
Sir William Lee
(interim)
8 March 6 April 1754 Whig
Hon. Henry Bilson Legge 6 April 1754 25 November 1755 Whig
Sir George Lyttelton, Bt 25 November 1755 16 November 1756 Whig
Hon. Henry Bilson Legge 16 November 1756 13 April 1757 Whig
The Lord Mansfield
(interim)
13 April 2 July 1757 Whig
Hon. Henry Bilson Legge 2 July 1757 19 March 1761 Whig
The Viscount Barrington 19 March 1761 29 May 1762 Whig
Sir Francis Dashwood, Bt 29 May 1762 16 April 1763 Tory
Hon. George Grenville[2] 16 April 1763 16 July 1765 Whig
William Dowdeswell 16 July 1765 2 August 1766 Whig
Hon. Charles Townshend[3] 2 August 1766 4 September 1767 Whig
Lord North[2] 11 September 1767 27 March 1782 Tory
Lord John Cavendish 27 March 1782 10 July 1782 Whig
Hon. William Pitt the Younger 10 July 1782 31 March 1783 Whig
Lord John Cavendish 2 April 1783 19 December 1783 Whig
Hon. William Pitt the Younger[2] 19 December 1783 14 March 1801 Tory
Henry Addington[2] 14 March 1801 10 May 1804 Tory
Hon. William Pitt the Younger [2][3] 10 May 1804 23 January 1806 Tory
Lord Henry Petty 5 February 1806 26 March 1807 Whig
Hon. Spencer Perceval[3] 26 March 1807 12 May 1812 Tory
Nicholas Vansittart 12 May 1812 12 July 1817 Tory

[edit] Chancellors of the Exchequer of the United Kingdom, 1817-1902

Although the Kingdoms of Great Britain and Ireland had been united by the Act of Union 1800 (39 & 40 Geo. III c. 67), the Exchequers of the two Kingdoms were not consolidated until 1817 under 56 Geo. III c. 98[4]. For the holders of the Irish office before this date, see Irish Chancellor of the Exchequer.

Name Portrait Entered office Left office Political party
Nicholas Vansittart 12 July 1817 31 January 1823 Tory
Hon. Frederick John Robinson 31 January 1823 20 April 1827 Tory
George Canning[3] 20 April 1827 8 August 1827 Tory
The Lord Tenterden
(interim)
8 August 1827 3 September 1827 Tory
John Charles Herries 3 September 1827 26 January 1828 Tory
Henry Goulburn 26 January 1828 22 November 1830 Tory
Viscount Althorp 22 November 1830 14 November 1834 Whig
The Lord Denman
(interim)
14 November 1834 15 December 1834 Whig
Sir Robert Peel, Bt 15 December 1834 8 April 1835 Conservative
Thomas Spring Rice 18 April 1835 26 August 1839 Whig
Francis Baring 26 August 1839 30 August 1841 Whig
Henry Goulburn 3 September 1841 27 June 1846 Conservative
Sir Charles Wood, Bt 6 July 1846 21 February 1852 Whig
Benjamin Disraeli 27 February 1852 17 December 1852 Conservative
William Gladstone 28 December 1852 28 February 1855 Peelite
Sir George Cornewall Lewis, Bt 28 February 1855 21 February 1858 Whig
Benjamin Disraeli 26 February 1858 11 June 1859 Conservative
William Gladstone 18 June 1859 26 June 1866 Liberal
Benjamin Disraeli 6 July 1866 29 February 1868 Conservative
George Ward Hunt 29 February 1868 1 December 1868 Conservative
Robert Lowe 9 December 1868 11 August 1873 Liberal
William Gladstone[2] 11 August 1873 17 February 1874 Liberal
Sir Stafford Northcote, Bt 21 February 1874 21 April 1880 Conservative
William Gladstone[2] 28 April 1880 16 December 1882 Liberal
Hugh Childers 16 December 1882 9 June 1885 Liberal
Sir Michael Hicks Beach, Bt 24 June 1885 28 January 1886 Conservative
Sir William Vernon Harcourt
6 February 1886 20 July 1886 Liberal
Lord Randolph Churchill 3 August 1886 22 December 1886 Conservative
George Goschen 14 January 1887 11 August 1892 Liberal Unionist
Sir William Vernon Harcourt 18 August 1892 21 June 1895 Liberal
Sir Michael Hicks Beach, Bt 29 June 1895 11 August 1902 Conservative

[edit] Chancellors of the Exchequer of the United Kingdom, 1902-present

Name Portrait Entered office Left office Political party
Charles Ritchie 11 August 1902 9 October 1903 Conservative
Austen Chamberlain 9 October 1903 4 December 1905 Liberal Unionist
H. H. Asquith 10 December 1905 12 April 1908 Liberal
David Lloyd George 12 April 1908 25 May 1915 Liberal
Reginald McKenna 25 May 1915 10 December 1916 Liberal
Andrew Bonar Law 10 December 1916 10 January 1919 Conservative
Austen Chamberlain 10 January 1919 1 April 1921 Conservative
Sir Robert Horne 1 April 1921 19 October 1922 Conservative
Stanley Baldwin 27 October 1922 27 August 1923 Conservative
Neville Chamberlain 27 August 1923 22 January 1924 Conservative
Philip Snowden 22 January 1924 3 November 1924 Labour
Winston Churchill 6 November 1924 4 June 1929 Conservative
Philip Snowden 7 June 1929 5 November 1931 Labour (1929 - 1931)
National Labour (1931)
Neville Chamberlain 5 November 1931 28 May 1937 Conservative
Sir John Simon 28 May 1937 12 May 1940 Liberal National
Sir Kingsley Wood [3] 12 May 1940 21 September 1943 Conservative
Sir John Anderson 24 September 1943 26 July 1945 National Independent
Hugh Dalton 27 July 1945 13 November 1947 Labour
Sir Stafford Cripps 13 November 1947 19 October 1950 Labour
Hugh Gaitskell 19 October 1950 26 October 1951 Labour
R. A. Butler 26 October 1951 20 December 1955 Conservative
Harold Macmillan 20 December 1955 13 January 1957 Conservative
Peter Thorneycroft 13 January 1957 6 January 1958 Conservative
Derick Heathcoat Amory 6 January 1958 27 July 1960 Conservative
Selwyn Lloyd 27 July 1960 13 July 1962 Conservative
Reginald Maudling 13 July 1962 16 October 1964 Conservative
James Callaghan 16 October 1964 30 November 1967 Labour
Roy Jenkins 30 November 1967 19 June 1970 Labour
Iain Macleod[3] 20 June 1970 20 July 1970 Conservative
Anthony Barber 25 July 1970 28 February 1974 Conservative
Denis Healey 1 March 1974 4 May 1979 Labour
Sir Geoffrey Howe 4 May 1979 11 June 1983 Conservative
Nigel Lawson 11 June 1983 26 October 1989 Conservative
John Major 26 October 1989 28 November 1990 Conservative
Norman Lamont 28 November 1990 27 May 1993 Conservative
Kenneth Clarke 27 May 1993 2 May 1997 Conservative
Gordon Brown 2 May 1997 27 June 2007 Labour
Alistair Darling 28 June 2007 present Labour

[edit] See also

[edit] Notes and references

  1. ^ Joseph Haydn, Horace Ockerby (ed.): The Book of Dignities, 3rd edition, Part III (Political and Official), p. 164. W.H. Allen & Co., London 1894, reprinted by Firecrest Publishing Ltd, Bath, 1969
  2. ^ Cite error: Invalid <ref> tag; no text was provided for refs named alsopm
  3. ^ a b c d e f Died in office.
  4. ^ Joseph Haydn, Horace Ockerby (ed.): The Book of Dignities, 3rd edition, Part X (Ireland), p. 562. W.H. Allen & Co., London 1894, reprinted by Firecrest Publishing Ltd, Bath, 1969
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