The financial services industry is preparing for major changes in the reshuffle following Gordon Brown’s succession as Prime Minister on June 27.
Cicero Consulting director Iain Anderson says he would not be surprised if Treasury chief secretary Stephen Timms replaces Work and Pensions Secretary John Hutton.
Timms held the position of pensions minister in 1999 and then 2005 after a period as Treasury financial secretary.
Treasury Economic Secretary Ed Balls could become Treasury Chief Secretary as a stepping stone to becoming Chancellor if he is not offered a bigger job straight away.
If Balls becomes Treasury Chief Secretary, Anderson says he may take his financial services industry brief with him, which would give the industry Cabinet-level representation.
Speculation is mounting that Hutton may keep a Government position, despite his antagonistic relationship with Brown, while pensions minister James Purnell could be promoted.