Boris Johnson is set to become the UK’s next prime minister after being announced as the new Conservative Party leader today (July 23).
Current chancellor of the exchequer, Phillip Hammond, has already announced that he would resign if Mr Johnson wins the top spot.
Mr Johnson has previously not ruled out closing down parliament in order to push through a no-deal Brexit, a stance which has seen ministers resign from the cabinet and analysts predict a fall in the pound following his appointment.
Just today, Anne Milton, minister for education, stood down after announcing she had “grave concerns” over a no-deal Brexit and that she “sincerely hoped” the UK would have left the EU with a deal back in March.
Sajid Javid MP, current home secretary, is rumoured to become the next chancellor of the exchequer with Jacob Rees-Mogg MP, chairman of the European Research Group and backbench MP, tipped to become Mr Javid’s secretary.
Mr Johnson will officially become Prime Minister of the UK tomorrow after Theresa May visits the Queen to step down.
In his acceptance speech, Mr Johnson said he thought the Conservative Party historically had the "best instincts" to serve the issues of the country.
Nigel Green, chief executive of deVere Group, said he expected a knee-jerk reaction for the pound to drop on the announcement that Mr Johnson has won the keys to number 10.
But Mr Green added that as the drop was expected and “priced-in”, it was unlikely to drop much further or for too long.
Jamie Johnson, chief executive of FJP Investment, said: “Boris Johnson’s victory should come as no surprise.
“Having been picked as the favourite at the beginning of the leadership campaign, the financial market has been able to prepare for his somewhat inevitable appointment.
“Over the next few hours, the markets will adjust to the news, but this should be a generally stable affair.
"The real question is how the markets will react over the next three months, particularly given Boris Johnson’s willingness to purse a no-deal Brexit should an agreement with the EU not be made by 31 October 2019.”
But Paresh Raja, chief executive of Market Financial Solutions, said Mr Johnson’s appointment as prime minister posed more questions than answers.
He added: “The most pressing of all is his strategy towards progressing Brexit. Given the hardships faced by Theresa May in her attempts to get her withdrawal bill through parliament, it remains to be seen how he will be able to achieve this.”
Mr Johnson has previously announced he would make changes to the pension tax issues that are affecting doctors if he was elected, while others have said he was open to stamp duty changes.
imogen.tew@ft.com
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