Boris Johnson started his first day as UK prime minister by sacking 11 members of his predecessor Theresa May’s cabinet in a mass Brexiteer reshuffle.

After being elected leader of the Conservative party on Tuesday, Johnson has placed his faith into former home secretary Sajid Javid to become the chancellor of the exchequer.

Javid is reportedly set to make drastic changes to prepare for a potential no-deal Brexit, something Johnson is adamant he will carry out if the withdrawal agreement with the EU is not revisited.

Unlike previous cabinet changes, the industry has been fairly quiet about the former Deutsche Bank managing director and what plans are expected.

It has been equally quiet with regard to the other cabinet changes that took place overnight, suggesting that the bulk of the financial services sector may be taking its time before passing judgement.

Positivity

“Javid’s philosophy fits much closer to Johnson’s, which should deliver a more conservative budget with tax cuts,” David Zahn, head of European fixed income, senior vice president and portfolio manager at Franklin Templeton Fixed Income Group, said.

“His finance background should allow him to communicate with the financial markets much better than Hammond.

“I expect a fairly significant overhaul of public finances with less austerity, tax cuts and a focus on investing in projects that support growth in the future.

“Javid’s appointment is positive for the City as you have a chancellor who understands it and what his department can do to help support the City’s growth.”

Fresh slate

Jon Greer, head of retirement policy at Quilter, said: “The tax system has grown ever more complex under the stewardship of George Osborne and Phillip Hammond, leaving plenty of unfinished business for Sajid Javid.

“There is a backlog of unhelpful policies that are at best obfuscated tax grabs and at worst badly thought out measures with dire unintended consequences.

“The annual allowance taper, residence nil rate band and Lifetime Isa have all made our tax and savings system more complex. These contrived policies were aimed to target very specific behaviours and practices, but the complexity of the design means they have come with a bundle of unplanned consequences or have failed to gain traction with savers.

“The new chancellor has a fresh slate and a crucial year ahead to fix these problems before a possible election.”

Read More: @International Adviser