Nadhim Zahawi is the new Chancellor, Downing Street has confirmed.
He will move from the post of education secretary, to be replaced by Universities Minister Michelle Donelan.
Boris Johnson has responded to Rishi Sunak’s departure as chancellor, saying he was “sorry” to have received Mr Sunak’s resignation letter and praising his “outstanding service”.
In a letter, the Prime Minister wrote: “Dear Rishi, I was sorry to receive your letter resigning from the Government.
“You have provided outstanding service to the country through the most challenging period for our economy in peacetime history”.
He noted the furlough scheme, Mr Sunak’s work on post-pandemic economic recovery and to repair public finances, as well as tax cuts.
“I have enormously valued your advice and deep commitment to public service and will miss working with you in government,” he concluded.
Also, Johnson told Sajid Javid he was “sorry” to receive his resignation letter as health secretary and suggested his Government would “continue to deliver” plans for the NHS.
In a brief letter, the Prime Minister wrote: “Dear Saj, Thank you for your letter this evening tendering your resignation. I was very sorry to receive it.
“You have served this Government, and the people of the United Kingdom, with distinction.”
Mr Johnson noted Mr Javid’s work to tackle Covid backlogs and other plans for the health service, and vowed that “the Government will continue to deliver on them”.
“You will be greatly missed, and I look forward to your contribution from the backbenches,” he concluded.
Seven in 10 Britons say Boris Johnson should resign, according to a snap YouGov poll of more than 3,000 people.
YouGov said that is an 11-point rise on the number of people in favour of the Prime Minister’s resignation when last asked on June 9.
But just 21% of people polled said they thought Mr Johnson will resign.
Meanwhile nearly six in 10 (56%) people said they thought Rishi Sunak was right to resign as chancellor.
Meanwhile, Conservative MP Virginia Crosbie has quit her role as parliamentary private secretary at the Welsh Office, stating she “cannot continue to defend” the Prime Minister’s actions.
Posting her resignation on Facebook, the Ynys Mon MP wrote: “I am forced to say that the sheer number of allegations of impropriety and illegality -many of them centred around Downing St and your premiership- is simply making your position untenable.
“I am of the view that if you continue in office you risk irrevocably harming this government and the Conservative party and will hand the keys of Downing Street to the Labour Party unfit to govern.
“The inaccurate and contradictory statements over what you knew about the former Deputy Chief Whip’s conduct before you appointed him was the last straw. I cannot continue to defend your actions to my Ynys Môn constituents who are rightly very angry.
“I have no idea what is happening at Downing Street but it appears you are either badly advised or unable to change or reform the dysfunctional operation at the centre of the government you lead.”
Also this evening, Michelle Donelan smiled as she left Number 10 after it was confirmed she would be promoted to Education Secretary.
She walked the opposite way to Nadhim Zahawi to a car waiting outside Number 11 and made no comment to press before it drove off.
Another vote looming
Conservative MP for South Cambridgeshire, Anthony Browne, has told Sky News he supports a change in the 1922 committee’s rules over allowing another no-confidence vote in the Prime Minister.
Mr Browne said: “There’s the 1922 committee, they’ve got rules at the moment which means they can only have one vote of no confidence per year.
“There’s a new election for the secretariat of that, the executive, it’s within their legal rights to change the rules and to require a new vote of no-confidence.
“What I do know is the Prime Minister has lost the confidence of very large parts of his parliamentary party and I just don’t think it’s sustainable.”