Philip Hammond has been appointed chancellor of the exchequer and Boris Johnson foreign secretary as Theresa May allocated the top posts in her cabinet on her first evening as prime minister.
Hammond, who was foreign secretary, was the first to be appointed and replaces George Osborne, who has resigned from government, Downing Street announced.
The former mayor of London played a major role in the leave camp during the EU referendum, and was the initial favourite to succeed Cameron, only for his leadership bid to end abruptly when his key Brexit ally, Michael Gove, stood against him.
Amber Rudd was appointed home secretary, in place of May herself.
Johnson said nothing to reporters as he left Downing Street to head for the Foreign Office. After Hammond left, he made the short trip to the Treasury, to meet his new team.
Hammond’s appointment as chancellor was confirmed in a brief Downing Street statement, reading: “The Queen has been pleased to approve the appointment of Rt Hon Philip Hammond MP as chancellor of the exchequer. The Rt Hon George Osborne MP has resigned from government.” It added: “Further ministerial appointments will be announced this evening.”
Another brief No 10 statement confirmed Johnson’s new job.
But the MP for Runnymede and Weybridge since 1997 has also shown a slightly less loyal side, reportedly annoying David Cameron with warnings about military cuts as defence minister and with criticisms of gay marriage legislation.
Hammond, now 60, has worked his way up with efficient handling of some complex ministerial briefs. In opposition he shadowed as pensions secretary and chief secretary to the Treasury before beginning in government at the slightly more junior role of transport minister as the coalition deal gave the Lib Dems his old post.
Immediately in government he showed his populist side, declaring Labour’s mythical “war on motorists” to be over and proposing to increase the motorway speed limit to 80mph, until the extra death toll this would have caused prompted the plan to be scrapped.
As defence minister in 2013 Hammond attracted criticism by talking about “a real sense of anger among many people who are married” over the gay marriage law. Hammond was later alleged to have likened gay marriage to incest – something he denied.
Rudd rose rapidly under the patronage of Osborne in the last parliament, starting off as his parliamentary aide and ending up in the cabinet.
The 52-year-old is one of the few senior Tory MPs to have won a marginal seat from Labour, taking Hastings and Rye in 2010. After just two years on the backbenches she was promoted by the chancellor, before entering the whips’ office and then heading to the Department of Energy and Climate Change.
Her appointment as energy secretary in 2015 was greeted with optimism by green groups, as she is committed to tackling climate change, unlike many of her colleagues on the right of the party.
Rudd struggled to defend the government’s tax credit cuts when confronted by an angry member of the public on the BBC’s Question Time last year.
However, she is regarded by colleagues as a solid media performer, and she was unafraid to take on Johnson in the EU referendum debate.