Update: Theresa May appoints Hammond as Chancellor; completes cabinet shake-up

Davis takes new Brexit minister role

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Update: Theresa May appoints Hammond as Chancellor; completes cabinet shake-up

The new UK Prime Minister Theresa May has begun unveiling her new cabinet, appointing former foreign secretary Philip Hammond as Chancellor, David Davis as Secretary of State for Exiting the European Union and Damian Green as Work and Pensions Secretary.

On Thursday the PM May continued to unveil her new cabinet, after appointing Hammond as Chancellor of the Exchequer following the resignation of George Osborne after six years on Wednesday evening.

Osborne warns 'tens of thousands' of financial jobs at threat from Brexit

Despite fighting alongside May (pictured) for the 'remain' side during the referendum campaign, Hammond previously said he could vote for Britain to leave the EU and was open to the idea of a Brexit.

He has previously worked as Secretary of State for Defence, and was appointed Secretary of State for Transport following the formation of the coalition government in May 2010.

Meanwhile, new PM May announced David Davis, a former Europe minister, has been appointed Secretary of State for Exiting the European Union, a new role created in the wake of the Brexit vote.

The idea of a Brexit minister was floated earlier this week after May said that "Brexit means Brexit, and we are going to make a success of it" in her address to the nation after being announced as the UK's new PM.

Boris Johnson was appointed as Foreign Secretary after formerly being the Lord Mayor of London. He was also one of the leaders of the 'leave' campaign in the EU referendum and ruled himself out of the Conservative Party leadership contest.

Additionally, former Energy Secretary Amber Rudd has become the new Home Secretary and Liam Fox, a Brexiteer, is the new Secretary of State for International Trade while Priti Patel is appointed International Development Secretary.

Stephen Crabb resigned from government "in the best interests of [his] family". Crabb was one of four contenders who lost out to Theresa May for the Conservative leadership.

He has been replaced by Green, Conservative MP for Ashford since 1997 and was minister of state for police and criminal justice until 2014.

Green's website states he is a board member of the Britain Stronger in Europe Campaign, and chairman of Conservative European Mainstream.

Additionally, Greg Clarke has been made Business, Energy and Industrial strategy Secretary in a newly-merged role, while Karen Bradley is Culture, Media and Sport Secretary.

Andrew Leadsom, who previously ran for leader of the Conservative party before withdrawing from the process, has been appointed Environment, Food and Rural Affairs Secretary in the new government.

Justice Secretary Michael Gove, who also ran against May for Tory leadership, has been sacked while Nicky Morgan, former Education Secretary, former Culture Secretary John Whittingdale, and former minister for government policy Oliver Letwin have also lost their roles.

Liz Truss, former Environment Secretary, has become Justice Secretary, while Justine Greening is the new Education Secretary and Minister for Women and Equalities.

Chris Grayling, Leader of the House of Commons and the Lord President of the Council since 2015, is the new Transport Minister and former Business Secretary Sajid Javid has become Communities Secretary.

Jeremy Hunt is remaining in his role as Health Secretary while Theresa Villiers has resigned after being offered a different role to her Northern Ireland Secretary position. James Brokenshire has now taken the NI Secretary job and Alun Cairns is Welsh Secretary.

Micheal Fallon is to remain in his role as Secretary of State for Defence, a role he has held since 2014.

Former Prime Minister David Cameron handed over the PM role to May following his last Prime Minister's Questions in the Commons earlier today.

May, previously Home Secretary, was announced as the new leader of the country earlier this week after becoming the only remaining candidate in the Conservative leadership contest following the withdrawal of Minister of State for Energy Andrea Leadsom on Monday.

The contest began when Cameron, PM since 2010, announced he would step down after losing the EU referendum in June.

Richard Buxton, head of UK equities and CEO at Old Mutual Global Investors, has said the new Chancellor Hammond should look at more extreme fiscal stimulus to boost the economy and avoid a 'DIY recession'.

"Philip Hammond walks into one of the most unusual economic environments I have known in my 30-year investment career. The question the new Chancellor will have to ask himself is: is further monetary stimulus really enough, or is it time for the baton to be passed on to fiscal policy?

"The Treasury can take a number of measures to help boost the economy, such as reducing stamp duty or cutting tax on petrol. However, I believe that we might eventually see more extreme fiscal stimulus: debt issuance to help back private sector or government schemes for infrastructure projects.

"The major drawback of loosening fiscal policy independently of other major economies is that a rising budget deficit could see foreign investors requiring a cheaper currency to attract their investment - potentially yet further weakness in sterling.

"The Bank of England has acknowledged the limits to further monetary stimulus, but equally cautioned that the government must remain fiscally prudent and responsible. Against the ‘protest vote' referendum result, however, the chancellor has to find the right balance between stimulating the economy, managing debt and pleasing the crowd by reducing income inequality. That is an enormous challenge."

 

 Name   Role 
 Theresa May   Prime Minister 
 Philip Hammond   Chancellor of the Exchequer
 Amber Rudd  Home Secretary 
 Michael Fallon  Secretary of State for Defence
 David Davis  Secretary of State for Exiting the EU 
 Boris Johnson  Foreign Secretary 
 Liam Fox  Secretary of State for International Trade 
 Jeremy Hunt  Secretary of State for Health  
 Liz Truss  Secretary  of State for Justice 
 Justine Greening  Secretary of State for Education
 Chris Grayling  Secretary of State for Transport
 Andrea Leadsom   Secretary of State for Environment, Food and Rural Affairs
 Damian Green   Work and Pensions Secretary 
 Sajid Javid   Secretary of State for Communities and Local Government
 Priti Patel  Secretary of State for International Development 
 Greg Clark  Secretary of State for Business, Energy and Industrial  Strategy  
 Karen Bradley  Secretary of State for Culture, Media and Sport 

 

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