Budget may be delayed following Javid resignation

The upcoming budget, scheduled for 11 March, may be delayed following ex-Chancellor Sajid Javid’s resignation, according to the Transport Secretary.

Speaking to the BBC, Grant Shapps noted that the new Chancellor, Rishi Sunak, may need more time to deliver the Budget.

If the date is altered, then key pension tax reform policy, including a potential solution to the tapered annual allowance, could be delayed.

Shapps stated: "The guy [Sunak] has only been in place for a few days, let's give him a few days to decide on the date."

He added that the government had not confirmed that the Budget would “definitely” take place “on the same date as mentioned before [11 March]”.

“Clearly, we’ll need to have a Budget,” he noted.

Javid resigned from his position as Chancellor in the midst of Prime Minister Boris Johnson's post-Brexit cabinet reshuffle on 13 February.

Javid was appointed Chancellor by Johnson in July 2019 but said that he could not accept the role following the reshuffle.

In the planned Budget, Javid was expected to deliver on the government's promises on tax, which may include reform of pension taxation, including the annual allowance taper affected public service schemes.

The BBC reported that a source close to Javid said: "The Prime Minister said he had to fire all his special advisers and replace them with Number 10 special advisers to make it one team.

"The chancellor said no self-respecting minister would accept those terms."

His replacement, Sunak, was previously Chief Secretary to the Treasury and Local Government Minister.

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