Sajid Javid replaced by Rishi Sunak after resigning as Chancellor following row over advisers with Boris Johnson

Follow our live updates here Rishi Sunak has been appointed his replacement It comes after a number of ministers were axed in a reshuffle
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Sajid Javid resigned as Chancellor today after refusing to accept a power grab over the Treasury by Boris Johnson.

The Chancellor walked out when the Prime Minister demanded that he sack his entire team of special advisers.

Rishi Sunak was instantly promoted to replace him - the swiftness seen as a sign that No 10 was fully prepared for its ultimatum to trigger a departure.

And in a sign of No 10 increasing its iron grip, maverick advisor Dominic Cummings will drive a new delivery unit to chase progress across Whitehall and focus on priorities.

Former Chancellor Sajid Javid
AFP via Getty Images

The drama erupted without warning after Mr Javid strolled smiling through the front door of No 10 in the middle of the reshuffle.

Five senior ministers had been sacked earlier but No 10 had indicated via sources that the Chancellor would be asked to stay on.

Mr Johnson told him he would indeed keep his job - but he had to agree conditions.

The first was to replace his special advisers, whom No 10 believed had broken ranks by announcing the Chancellor’s backing for HS2, and kite-flying on a Mansion Tax and cutting tax relief on pensions.

Rising star: Rishi Sunak is replacing Sajid Javid
PA

The second condition was a new economic unit, jointly run between No 10 and the Treasury, which would effectively mean handing partial control over his department to the PM’s office.

Mr Javid baulked, in particular at being ordered to sack his aides, saying “no self-respecting minister” could bow to such terms.

“We hoped he would not resign,” said a source close to the Prime Minister. “There is no ill will towards the former Chancellor.

“But the relationship between the PM’s office and the Treasury is the most important in Government.

"We cannot have a political team that displays even a cigarette paper of difference.”

Mr Javid’s allies saw things differently, with some saying he had been forced onto his own sword.

Certainly, Mr Javid had been the target of sniping attributed to No 10. He was branded a Chino - Chancellor in Name Only - by the PM’s allies.

And Mr Johnson’s aide Cummings last summer had a senior Treasury aide Sonia Khan fired and frogmarched out of the building without Mr Javid being informed.

The PM's top aide Dominic Cummings
REUTERS

Significantly, he had reined in the PM from making fresh spending announcements during the election.

“He turned down the job [of Chancellor] because the Prime Minister told him to fire all his Spads [Special Advisers],” said a source close to Mr Javid.

The astonishing drama dominated the reshuffle and amounted to a huge power grab over Whitehall by the Prime Minister.

Among other changes, the PM was planning to slim down the overall size of Cabinet meetings, cutting the number of ministers who attend.

Mr Johnson started the day by firing five ministers after breakfast.

Boris Johnson started the day by firing five ministers
REUTERS

First for the chop was Northern Ireland Secretary Julian Smith for mishandling a political storm over new investigations into historic allegations against members of the security forces. He was replaced by Brandon Lewis.

Senior Brexiteer Andrea Leadsom, the Business Secretary who campaigned at Mr Johnson’s side in the 2016 referendum on EU membership, was next to be despatched.

Housing Minister Esther McVey, another Brexiteer, paraded her dismay on Twitter after she, too, was given her marching orders.

“I’m very sorry to be relieved of my duties...” she tweeted.

Booming-voiced Attorney General Geoffrey Cox and Environment Secretary Theresa Villiers - both Brexiteers - were axed too.

Out: Geoffrey Cox
AFP via Getty Images

Mr Cox made clear he did not go willingly. “I am now leaving the Government at the PM’s request,” he said.

Ms Villiers was more philosophical: “What the prime minister giveth, the prime minister taketh away,” she wrote.

At 10.30am Mr Javid walked smiling to the front door of No 10, apparently heading a parade of survivors and winners. Half an hour later he was out of the Cabinet.

The biggest winner was his deputy, Mr Sunak, a former banker married to the daughter of an Indian billionaire.

Rishi Sunak has replaced Sajid Javid as Chancellor 

He impressed Mr Johnson with his plans for free ports and assured manner, and he played a high profile role in the general election campaign.

Another big winner was Alok Sharma who was promoted to Business Secretary, replacing Ms Leadsom.

He also takes on the potentially poisoned chalice of the presidency of the COP26 environmental summit, which will be the biggest and most important gathering of world leaders in Britain this year but has been beset by chaotic planning.

Mr Sharma impressed colleagues with his “quiet competence” in his first Cabinet role as International Development Secretary.

Before that, as Minister for Housing, he handled the Government’s response to the Grenfell tragedy and was moved to tears while giving a statement in the Commons.

Anne-Marie Trevelyan joins the Cabinet as International Development Secretary, having previously been a defence minister.

Oliver Dowden has become a full Cabinet member as Culture Secretary, having previously attended the meetings as paymaster general.

Foreign Secretary Dominic Raab, Home Secretary Priti Patel, Justice Secretary Robert Buckland, Chancellor of the Duchy of Lancaster minister Michael Gove, Trade Secretary Liz Truss, Transport Secretary Grant Shapps and Health Secretary Matt Hancock were all confirmed as staying put.

Mr Smith’s was the most spectacular downfall - fired after just after 204 days as Northern Ireland Secretary, and weeks after being hailed as architect of a deal to restore power-sharing in the Province.

Sacked: Northern Ireland Secretary Julian Smith
AFP via Getty Images

His fall follows allegations that he secured the agreement by promising Republicans an investigation into historic allegations of wrongdoing by the security forces, raising the prospect of elderly former Royal Ulster Constabulary officers going on trial.

Downing Street was said to have been furious at being bounced into the controversy.

In a statement, Mr Smith said: “Serving the people of Northern Ireland has been the biggest privilege.

"I am extremely grateful to Boris Johnson for giving me the chance to serve this amazing part of our country.”

Irish premier Leo Varadkar led tributes to Mr Smith as “one of Britain’s finest politicians of our time”.

Although several female ministers were axed in the reshuffle, Downing Street indicated that there would not be a reduction in the number of women around the Cabinet table.

Former culture secretary Baroness Morgan had already said she was leaving her role.

Later, it was announced that former Brexit secretary Stephen Barclay has been appointed as Chief Secretary to the Treasury.

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