Former education secretary Nadhim Zahawi is appointed as UK chancellor following the dramatic resignation of Rishi Sunak.
Chris Sanger, EY’s head of tax policy, said: ‘The chancellor’s resignation could be a turning point in the UK’s tax policy, with Rishi Sunak having held the line against tax reductions in the face of increasing inflation. Whether the new chancellor will be so wedded to Treasury orthodoxy is yet to be seen. We may get some clues if a planned speech on the economy goes ahead with a new chancellor next week.
‘The most immediate item is the upcoming “legislation day” or “L-day”. Whilst the date of L-day was announced by the financial secretary to the Treasury only a few hours before the chancellor’s resignation, L-day was already positioned as largely covering pre-announced policy changes. As such, yesterday’s resignation may well not affect the timing of the day itself. However, the publication does require the approval of ministers, and may provide an opportunity for the new incumbent to take a different path. Whilst the most controversial policies, the recent NICs increase and the health and social care levy have already been legislated, there may yet be some surprises to come.’
Former education secretary Nadhim Zahawi is appointed as UK chancellor following the dramatic resignation of Rishi Sunak.
Chris Sanger, EY’s head of tax policy, said: ‘The chancellor’s resignation could be a turning point in the UK’s tax policy, with Rishi Sunak having held the line against tax reductions in the face of increasing inflation. Whether the new chancellor will be so wedded to Treasury orthodoxy is yet to be seen. We may get some clues if a planned speech on the economy goes ahead with a new chancellor next week.
‘The most immediate item is the upcoming “legislation day” or “L-day”. Whilst the date of L-day was announced by the financial secretary to the Treasury only a few hours before the chancellor’s resignation, L-day was already positioned as largely covering pre-announced policy changes. As such, yesterday’s resignation may well not affect the timing of the day itself. However, the publication does require the approval of ministers, and may provide an opportunity for the new incumbent to take a different path. Whilst the most controversial policies, the recent NICs increase and the health and social care levy have already been legislated, there may yet be some surprises to come.’
