A government reshuffle is expected within weeks, and the Treasury is set for a change of leadership. According to City of London insiders, three names have emerged as potential successors to the current chancellor, as the prime minister seeks to recalibrate economic policy amid persistent inflation and sluggish growth.
The first candidate is the current Business Secretary, a figure known for her orthodox fiscal conservatism and close ties to industry. She has been a vocal advocate for supply-side reforms and deregulation, positioning herself as a safe pair of hands for financial markets.
The second is the Chief Secretary to the Treasury, a technocrat with deep experience in public spending negotiations. Insiders point to his meticulous handling of departmental budgets and his ability to navigate the cross-benches as key assets. However, his relative lack of public profile may count against him.
The third contender is a former Treasury minister now on the backbenches, who has used select committee appearances to build a reputation for forensic scrutiny of economic data. His support for digital currency and fintech has earned him allies in the City, though his eurosceptic past could complicate relations with Brussels.
All three candidates are considered loyal to the prime minister, but each would signal a different direction. The Business Secretary would reassure markets seeking continuity; the Chief Secretary would emphasise fiscal discipline; and the backbencher would represent a break with the recent past.
The Treasury itself is also preparing for operational changes, with a review of its forecasting models and a potential shift in the inflation target. These institutional adjustments may outlast any single chancellor, but they will be shaped by whoever takes the helm.
Downing Street has declined to comment on the reports, but the prime minister is expected to make changes before the autumn statement. For the City, the choice of chancellor will be the first major test of the government's post-pandemic economic vision.
