Osborne has resigned from the Cabinet and will play no further role at the highest levels of government - he will move to the back benches. 

He is replaced by Hammond, who most recently served as foreign secretary from July 2014 until July 2016 and was secretary of state for defence from 2011 until July 2014. He was previously secretary of state for transport from May 2010, when he was appointed as a privy counsellor. Prior to this, he held a number of shadow portfolios. He was first elected to parliament in 1997 as MP for Runnymede and Weybridge.

Hammond is seen as a ‘safe pair of hands’ taking over at the Treasury. Before entering politics, he worked in business in small and medium-sized companies in manufacturing, consultancy, property and construction, and oil and gas, both in the UK and abroad.

His first major exercise will be the Autumn Statement in late November, where the Chancellor will have the first opportunity to review tax and spending policy. He has ruled out an Emergency Budget.

Meantime, the 2016 Finance Bill has been delayed until September as it still needs to be debated in the House of Lords. This follows approval of  various amendments at committee stage.

Brexit negotiations

Critical to the government’s next priorities will be the move towards Article 50, which is unlikely to be triggered until substantive negotiations with the EU have been negotiated.

The government is currently looking for a building to house the new Brexit exit team and staffing will be announced shortly.