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Javid becomes chancellor as Rudd remains in place

Javid becomes chancellor as Rudd remains in place

Sajid Javid MP has been announced as chancellor of the exchequer in Boris Johnson's cabinet reshuffle.

Mr Javid, a former investment banker, was home secretary under Theresa May. He backed Remain in the EU referendum but is widely considered a eurosceptic.

Others to gain top spots in the reshuffle, announced yesterday (July 24), include Amber Rudd MP — who will stay on as minister for Work and Pensions — and Nicky Morgan MP, who will step down as chair of the Treasury select committee to become Culture secretary.

Ms Rudd has been head of the department for Work and Pensions since November last year.

The department is now embattled with issues such as the tapered annual allowance — which is causing problems for doctors' and teachers' pensions — as well as the closure of defined benefit schemes.

Concerns about doctors’ and teachers’ pensions hit the headlines when it emerged doctors were refusing shifts to avoid high tax bills.

The government is currently consulting on how to fix the issue but has refused to tinker with the tapered annual allowance that has widely been blamed for having caused the problem.

Former international development secretary, Priti Patel, replaced Mr Javid as home secretary, while Dominic Raab has been appointed foreign secretary.

Stephen Barclay remains top dog in the Brexit department while Michael Gove — the former environmental secretary who ran against Mr Johnson in the leadership campaign — is chancellor of the Duchy of Lancaster.

Jeremy Hunt, Mr Johnson's leadership rival up until the announcement on Tuesday (July 23), does not feature in the new cabinet.

Theresa Villiers, former Northern Ireland secretary, has taken over from Mr Gove as environment minister.

Vocal supporter of Mr Johnson and formerly tipped to become chancellor, Lizz Truss, has been appointed as international trade secretary while Matt Hancock remains minister for Health and Social Care.

Gavin Williamson has been named education secretary, Andrea Leadsom is business secretary and Robert Jenrick is the minister for Housing and Communities.

Earlier this week, advisers told FTAdviser which issues they hoped the new prime minister would tackle in his time in the top spot.

The tapered annual allowance, and end to regulatory changes and a simplification of income tax featured high up the agenda.

We also took a look at what to expect from a new chancellor following Philip Hammond's resignation and advisers said they want clarity over pensions and tax increases.