Chancellor Sajid Javid has resigned as the turf war between the two Downing Street teams erupts, prompting the pound to briefly fall.
Javid was thought to be personally safe as part of today’s reshuffle. However this morning he was asked to fire two of his special advisers Mats Persson and Sam Coates.
The chancellor refused and resigned as a result.
The pound has dropped sharply as the news emerged, although recovered quickly and is actually up 0.1 per cent against the dollar on the day.
It is now thought Rishi Sunak, Javid’s deputy, will take the top job at Number 11.
A joint unit of special advisers between the two addresses is now expected to be created.
There has been a brewing war between the two sides, particularly over the Spads, who Number 10 felt had gone rogue. City AM understands the final nail was an official who was photographed entering Number 11 on Monday carrying sensitive documents that outlined the UK’s position on financial services as part of the forthcoming trade talks with the EU.
But the two sides have been at loggerheads for months now.
Javid was said to be livid after Number 10 sacked another of his Spads, Sonia Khan, without forewarning him, last autumn. The Prime Minister’s team also scuppered his first big speech by forcing him to cancel it at the last minute.
The two sides embarked on a briefing war, with Number 10 referring to Javid as Chino – chancellor in name only.
Sunak is one of those who had been tipped for a promotion, having backed Johnson during his leadership campaign last summer.