/Cabinet reshuffle: McVey, Leadsom, Villiers, Cox and Smith among those sacked – live news

Cabinet reshuffle: McVey, Leadsom, Villiers, Cox and Smith among those sacked – live news







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Liz Truss remains as international trade secretary







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Anne-Marie Trevelyan promoted to be international development secretary







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What Sajid Javid’s replacement by Rishi Sunak might mean for the budget

Sajid Javid’s resignation as chancellor of the exchequer leaves his successor, Rishi Sunak, with little more than three weeks to pull together a budget that Boris Johnson has promised will bring a new dawn of spending to “level up” the regions and nations of the UK. The budget was also expected to fortify the economy before the start of new trading arrangements with the EU next year.

Sunak, who was part of the 2015 intake to the Commons, joined the Treasury ministerial team last summer after 18 months as a housing minister. Despite his short tenure in Whitehall’s most powerful ministry, the privately educated, Cambridge graduate will be familiar with the issues Javid was dealing with in his negotiations with Dominic Cummings and No 10.

Cummings wants a spending spree to be directed by No 10, with large sums for the science budget and a wide array of infrastructure projects, not just the HS2 rail one.

Last week No 10 let it be known that the PM’s top aide was working “pretty much full time” on what should be included in the budget and what should be targeted in the government spending review.

Taxes on the “idle rich”, a particular target of Cummings, will also need to be modelled by the Treasury to test its possible impact. A mansion tax has been floated by No 10.

Cummings is also an enthusiastic supporter of raising national insurance towards the income tax threshold of £12,500 to put more money in the pockets of poor and middle-income families.

A more radical policy to limit tax relief on pension saving, which previous chancellors have considered and always resisted after it became clear it would provoke huge resistance, not least from better-off Tory voters, could also get the green light.

Javid resisted moving quickly to increase spending and cut taxes after it became clear that taxes on the higher paid would only offset some of the cost and force him to blow out his borrowing limits.

Rishi Sunak, the new chancellor, facing photographers in Downing Street this morning.

Rishi Sunak, the new chancellor, facing photographers in Downing Street this morning. Photograph: Hannah McKay/Reuters

Updated
at 8.35am EST

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