With Mr Johnson forming a new Government following his election campaign, the Prime Minister could carry on with tradition by drawing up a list. If he does carry out the procedure, Mr Hammond could be left off due to his participation in the Remain campaign.
The former Chancellor of the Exchequer was not only a Remain supporter but also resigned from Cabinet before Mr Johnson came to power.
Amid the threat of a no deal Brexit, Mr Hammond also voted against the Government and subsequently had the party whip removed along with a number of other Tory MPs before he announced that he would be standing down before the election.
With their past clashes in mind, the Prime Minister could break tradition to make Mr Hammond the second former Chancellor of the Exchequer to be snubbed for a peerage.
Mr Hammond’s predecessor, George Osborne became the first Chancellor of the Exchequer in the last 50 years not to be offered a peerage by then Prime Minister, Theresa May, as reported by The Sun.
At the time, a No 10 source said: “George Osborne did a great job as Chancellor clearing up the mess left by Labour.
“He chose to stand down at the election, and is much missed, but is clearly managing to fill his time in a number of other ways.”
Indeed, despite being appointed to the position in 2016 by Mrs May, the then Prime Minister also left the Chancellor off the list when she resigned in September.
As it stands, Mr Johnson has not announced whether he will carry out an Honours List or not.
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He will also have to replace Department for Environment, Food and Rural Affairs Minister (Defra), Zac Goldsmith who lost his seat in the election.
Moreover, Culture Secretary Nicky Morgan and former Wales Secretary, Alun Cairns both stood down before the election and will need to be replaced.
The Prime Minister will also chair Cabinet for the first time tomorrow as he begins to outline his Government’s aims.
Ahead of the meeting, a No 10 source told the BBC: “The Prime Minister has been very clear that we have a responsibility to deliver a better future for our country and that we must repay the public’s trust by getting Brexit done.”
With Mr Johnson now given a working majority, EU leader have already stated their intention to resume talks as quickly as possible.
Although there is still uncertainty over whether Brexit can be completed before December 2020, President of the European Council, Charles Michel stated his desire to carry out negotiations.
He said during the EU leaders summit last week: “We are ready, we know what the most important principles are we want to defend and promote in the next phase.