BORIS Johnson was today confirmed as the next Prime Minister, beating fellow conservative leadership candidate Jeremy Hunt to the post with a landslide victory.
BoJo won over 66.4 per cent of members’ votes, with Mr Hunt trailing far behind on just 33.6 per cent.
Tomorrow he will takeover from outgoing Prime Minister Theresa May – but what does it mean for your finances?
We take a look at the change that could happen as our new PM makes his mark.
Slashed income tax for millions of Brits
Last month he vowed to slash income tax for three million Brits if he became PM.
At the time, he said he will increase the threshold at which people have to pay the 40p rate of income tax from £50,000 to £80,000.
It will cost an estimated £9.6billion a year, and will be paid for by dipping into the £26.6billion set aside for no-deal planning.
Mr Johnson said: “We should be raising thresholds so that we help the huge numbers that have been captured in the higher rate.”
Under the plans, someone earning £60,000 is estimated to see their tax bill fall by £2,000, according to tax experts at Blik Rothenberg.
Currently, people in the higher tax rate band – earning from £50,001 to £150,000 – are taxed by 40 per cent.
But under Boris Johnson, the income tax band would be altered to see people earning up to £80,000 dropped into the basic tax rate of 20 per cent.
Therefore, at the moment if someone is earning £55,000, you’ll take home £40,433, according to tax experts at Blik Rothenberg.
Under the proposed tax rates, you’ll take home £41,433.
If you are earning £80,000 or more, you would take £6,500 more home a year.
These changes won’t happen immediately, they will probably happen in the next budget which usually happens in November.
Cut VAT and make fewer people pay National Insurance
Mr Johnson has also promised to slash VAT and make fewer people pay National Insurance.
Action could include lowering VAT rates and raising the National Insurance threshold for lowest earners, although nothing’s set in stone yet.
If he presses ahead with the changes, it would form part of a “Brexit bonanza” to boost the wage packets of millions of hard-pressed families if we go ahead with his plan for a No Deal.
Slamp duty slashed
The new PM plans to slash stamp duty on homes to get the housing market moving again.
He’s previously said that it’s a “problem” that stamp duty is so high and cutting it would free up more houses for first-time buyers.
Mr Johnson hasn’t yet officially put a figure on how much he’ll cut it by, but reports claim he’s planning to scrap stamp duty on homes worth less than £500,000.
“The proposed stamp duty cut would represent a major giveaway of up to £10,000 for first-time buyers and £15,000 for other property buyers,” said Tom Selby, senior analyst at AJ Bell.
“Clearly that’s potentially good news for those looking to buy a home, although stimulating demand in such a manner without building more houses risks simply stoking house price inflation.”
Philip Hammond last year scrapped stamp duty for first time buyers as part of a Budget giveaway for the young, but stamp duty is still stopping people from moving, experts say.
New state-backed care scheme
Boris is also expected to announce a new state-backed insurance scheme which people would use to save for better care in their old age from their 40s, The Sun revealed today.
It’s expected to be voluntary and ask all workers over 40 to contribute 2.5 per cent of their wages to it every year.
The plan has been drawn up over the last few weeks in strict secrecy by Boris’s transition team, lead by his Chief of Staff Sir Eddie Lister, Health Secretary Matt Hancock and Cabinet Office Minister Oli Dowden.
Resolving pension crisis within the NHS
Mr Johnson has also promised to “fix” the pension tax crisis currently going on within the NHS.
The issue is caused by the tapering of the annual tax-free allowance for people who earn more than £150,000, leading some GPs and consultants to cut their hours or taking early retirement.
This, in turn, has put extra pressure on already overburdened hospitals.
Mr Selby said: “The Department of Health and Social Care yesterday proposed flexibilities in the scheme so GPs and high-earning consultants can opt to pay less into their pension and in turn get lower pensions.
“This, it argued, would mean they could reduce or even eliminate the risk of being hit by annual allowance charges.
“This complex fudge is unlikely to appease those affected, however, and while Johnson has not said how he will ‘fix’ the problem, scrapping the taper altogether would be the obvious solution.
“This could then be used as a starting point for a broader review of the pension tax regime, with a central aim of simplification and increasing the number of people saving for retirement.”
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The pound initially jumped against the euro as Mr Johnson was confirmed as the new Prime Minister today.
Following the result of the, he anointed himself “The Dude to deliver Brexit and unite the country”.
But in a sign of the challenge facing the next PM, David Gauke and Rory Stewart both announced they were leaving the Cabinet and will lead the revolt to block No Deal.
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