The UK Budget 2020 is due next month but after the shock resignation of Sajid Javid this week the government may be forced to delay the date.
The official date for the Budget 2020 is 11 March but the government so far has not confirmed it will go ahead after the reshuffle which saw Rishi Sunak replace Javid.
The PM’s huge majority means the Budget 2020 has been highly anticipated especially since the manifesto lacked a huge amount of detail on tax reform and public spending commitments.
Changes to tax, pensions and housing are all expected to feature in a bid to “level up” the regions outside of London.
Why did Sajid Javid resign?
Johnson’s reshuffle this week saw the shock resignation of Chancellor Sajid Javid, who had only been in the post for seven months.
Javid was thought to be one of the few in the Cabinet to be safe in his role,but he has now become the first chancellor never to have delivered a Budget.
The explosive departure is a sign of a Downing Street turf war.
Javid was asked to sack his two special advisers Mats Persson and Sam Coates. He refused and resigned as a result.
What kind of Budget will we get?
Rishi Sunak, who was Javid’s deputy at the Treasury, has just three weeks to put the finishing touches on a range of ambitious policies in the Budget 2020.
The Richmond (York) MP has only been in parliament for four years but had been widely tipped for promotion during his time at the Treasury.
The reshuffle further centralised power in Number 10 as the PM began moves to merge the Department for International Development and the Foreign Office.
The market has interpreted the appointment as an indication of higher public spending in the future since Johnson has installed a loyal chancellor who will rubber stamp what he wants.
Sterling is set for its biggest weekly rise in two months as investors ramped up expectations that Sunak would unveil a more expansionary budget.
David Madden, market analyst at CMC Markets, said: “Rishi Sunak is more likely to be influeneced by Prime Minister Johnson – who is thought to be keen to go on a Trump-esque spending spree.”
“Traders are optimistic that pro-business policies are in the pipeline for the UK so sterling’s wider positive move could continue,” he added.
It is thought that Johnson will push Sunak to tear up Javid’s spending limits ahead of the Budget 2020.
In the Queen’s speech last October, the government pledged an extra £1bn funding for councils but since the election priorities have shifted somewhat.
Among policies mooted is the introduction of a wealth tax – the so-called mansion tax – as well as pension tax relief.
The government has also pledged to reform entrepreneur’s tax relief amid concerns it is overly generous to the wealthy.