Chancellor Sajid Javid resigns

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

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

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 is Chief Secretary to the Treasury and former Local Government Minister, Rishi Sunak.

When Local Government Minister and commenting on a consultation in response to the Carillion crisis, Sunak said: “We’re committed to making the Local Government Pension Scheme fairer and are seeking views on taking existing pension protections further."

Javid's resignation may have an impact on pensions tax reform and other pensions related policy expected in the Budget that he was due to deliver on 11 March.

Commenting on the announcement, Quilter tax and financial planning expert, Rachael Griffin, said: "This was supposed to be a low-key reshuffle but instead we have yet another key ministerial change. It is really not a good look for the Chancellor to quit less than a month before their first Budget, and it leaves a host of issues hanging in the balance.

"Rishi Sunak in his new role will need to work extraordinarily quickly to get a grip on the upcoming Budget and present it to Parliament next month. It is yet to be seen whether Sunak will serve as No. 10’s puppet, given the speculation that the Prime Minister’s office is seeking to take closer control of the Treasury.

"He will inherit several political hot potatoes. For instance the government has already promised to fix its disastrous pension annual allowance taper, which has led to staffing shortages in key public services, including the NHS.

"The government is also under pressure to address the issue of social care funding which has been kicked down the road multiple times and was a major Tory manifesto pledge."

There will now be a new joint team of Number 10 and 11 Downing Street special advisers, which was previously the duty of Number 11.

This could represent an overhaul of the workings of Treasury.

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