THIS combo shows Britain’s new Chancellor of the Exchequer Rishi Sunak at the Treasury in London and (right) Sajid Javid at the Downing Street on Thursday.—Reuters
THIS combo shows Britain’s new Chancellor of the Exchequer Rishi Sunak at the Treasury in London and (right) Sajid Javid at the Downing Street on Thursday.—Reuters

LONDON: British Fina­nce Minister Sajid Javid resigned on Thursday just weeks before the announcement of the government’s annual budget, in a shock move provoked by Prime Minister Boris Johnson’s attempts to shake up his cabinet after Brexit.

Javid, the son of a Pakis­tani immigrant bus driver, stood down after Johnson tried to use a reshuffle to remove some of his aides, a source close to the departing minister said.

He was immediately replaced by his 39-year-old deputy, Rishi Sunak, a former banker and Brexit supporter who is seen as close to Downing Street.

The pound briefly retrea­ted on the departure of cha­n­ce­llor of the exchequer, but soon recovered as analysts said the new chancellor could open the way for more public spending and growth.

Sunak appears more aligned with Johnson than his predecessor in backing a looser fiscal policy, noted Paul Dales, chief UK economist at Capital Economics. “The move seems designed to allow the government to push through even bigger increase in public investment and perhaps resuscitate tax cuts that previously looked dead in the water,” he said.

But Javid’s departure also presents a challenge to Johnson’s authority, just as he seemed at his strongest. After his election victory in December, the prime minister fulfilled his pledge to get Britain out of the European Union on Jan 31 — but the country’s future ties with the bloc remain uncertain.

Johnson began his cabinet reshuffle by sacking his ministers for Northern Ireland, business, environment and housing, as well as his attorney general.

Foreign Minister Dominic Raab, Johnson’s de facto deputy Michael Gove and several other key ministers stayed in post — and Javid was widely assumed to be safe.

But there have been re­ports that the former City of London banker had cla­shed with both the prime minister and his influential adviser, Dominic Cummings.

A source close to Javid later revealed he quit rather than agree to greater control from Downing Street.

“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 source said. “The chancellor said no self-respecting minister would accept those terms.”

John McDonnell, finance spokesman for the main opposition Labour party, said the government was “in crisis”.

“It’s clear Dominic Cummings has won the battle to take absolute control of the Treasury and has installed his stooge as the chancellor,” he tweeted.

Johnson had earlier sacked Northern Ireland Secretary Julian Smith, a surprising move given Smith’s role in restoring the power-sharing government to Belfast last month after a three-year suspension.

Smith helped persuade the two main parties, Sinn Fein and the Democratic Unionist Party, to work together for the first time since the executive collapsed in January 2017 in a scandal over a renewable energy scheme.

Published in Dawn, February 14th, 2020