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Johnson asserts control over UK government with cabinet reshuffle

PRIME MINISTER Boris Johnson forced the resignation of his finance minister on Thursday (13) for refusing to toe the line, a sign he was tightening his control in a government reshuffle designed to deliver his vision for Britain beyond Brexit.

Johnson, who had wanted to minimise any disruption from his long-planned cabinet revamp, quickly replaced Sajid Javid with his deputy Rishi Sunak, a loyal supporter of the prime minister who is often put before the media to sell government policy.


Johnson's team had carefully choreographed the reshuffle, presenting it as an opportunity to foster new talent, particularly among women, while also rewarding loyalists.

But the finance minister's resignation - which some commentators said might have been sought by Johnson's team all along - added to a sense that the prime minister would brook no dissent.

"He has turned down the job of Chancellor of the Exchequer (finance minister)," a source close to Javid said.

The source said Johnson had told Javid he would have to sack his advisers and replace them with advisers from the prime minister's Downing Street office. "The Chancellor said no self-respecting minister would accept those terms."

Sunak, who once worked for investment bank Goldman Sachs and is married to the daughter of an Indian billionaire, is seen by many Conservatives as a safe pair of hands who will easily get on board with Johnson's agenda for a post-Brexit Britain.

David Jones, a former Brexit minister, described Sunak as "very bright" and an "excellent choice".

Sterling rose on the expectation of investors that Sunak's appointment would pave the way for a more expansionary budget next month.

Johnson has promised to reduce the wealth and opportunity gap between parts of Britain by channelling investment into northern and central England, where he won the votes of many traditional supporters of the main opposition Labour Party.

Johnson had not been expected to change the biggest-hitting posts in his government, keeping change to a minimum. But even the smaller changes in the lower ranks of government offered some insight into how he wanted to tighten his grip on power.

His sacking of Northern Ireland minister Julian Smith, who only a month ago had helped broker the restoration of a government in the British province, prompted criticism from politicians north and south of the border with Ireland.

Smith, who had been in charge of parliamentary discipline for Johnson's predecessor, Theresa May, was the first minister to lose his job in the reshuffle. He was joined by business minister Andrea Leadsom and environment minister Theresa Villiers.

Ultra-loyal Alok Sharma, a former minister for international development, was appointed as the new minister for business and also the head of the COP26 climate change summit in Scotland in November, due to be attended by world leaders.

Anne-Marie Trevelyan was promoted to minister for international development, while other big departments - foreign, home affairs, trade and health - kept their ministers.

It was Javid's move which shook up the 'business as usual' look that Johnson had wanted to portray.

Downing Street aides had previously played down suggestions, based on Johnson's senior adviser Dominic Cummings' well-publicised desire to see a radical reorganisation of government, that there would be major changes.

But it was clear that loyalty mattered to Johnson to be able to deliver his agenda and meet the promises he made in the run-up to the Dec. 12 election, in which he won a large majority.

Opposition politicians said Javid's resignation had shown the reshuffle to be a mess.

"This is a historical record. A government in chaos within weeks of an election," said John McDonnell, Labour's finance spokesman.

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Lakshmi Mittal

Mittal's exit comes as Rachel Reeves prepares a fresh tax raising budget aimed at balancing the government's finances

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Lakshmi Mittal quits Britain for Switzerland and Dubai over inheritance tax concerns

Highlights

  • Lakshmi Mittal, worth over £15 bn, has moved his tax residence from UK to Switzerland with plans to spend most time in Dubai.
  • Inheritance tax concerns, not income tax, drove the decision of the "King of Steel" to leave after 30 years in Britain.
  • The departure marks another high-profile exit as chancellor Rachel Reeves prepares major tax rises in the coming Budget.
Lakshmi Mittal, one of Britain's wealthiest men, has ended his three-decade association with the UK, relocating his tax residence to Switzerland and planning to base himself in Dubai. The 74-year-old steel magnate, worth approximately £15.5 bn according to the Asian Rich List 2025, is the latest prominent entrepreneur to leave Britain amid Labour's tax reforms targeting the super-rich.

The Indian-born billionaire built his fortune through ArcelorMittal, the world's second-largest steelmaker, in which he and his family hold nearly 40 per cent ownership. Since arriving in London in 1995, Mittal became a prominent figure in British business, acquiring expensive properties including a £57 m mansion on Kensington Palace Gardens known as the "Taj Mittal."

An adviser familiar with Mittal's family plans told The Sunday Times that, inheritance tax was the decisive factor in the decision. "It wasn't the tax on income or capital gains that was the issue, the issue was inheritance tax."

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