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Sajid Javid has shocked Westminster by quitting as chancellor in the middle of Boris Johnson’s cabinet reshuffle.
Mr Javid rejected the prime minster’s order to fire his team of aides, saying “no self-respecting minister” could accept such a condition.
He has been replaced as chancellor by Chief Secretary to the Treasury Rishi Sunak – who just seven months ago was a junior housing minister.
Mr Javid had been due to deliver his first Budget in four weeks’ time.
The former home secretary was appointed chancellor by Mr Johnson when he became prime minister in July.
His resignation follows rumours of tensions between Mr Javid and the prime minister’s senior adviser Dominic Cummings.
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“He has turned down the job of chancellor of the exchequer,” a source close to Mr Javid, who had been expected to remain in place, said.
“The prime minister said he had to fire all his special advisers and replace them with No 10 special advisers to make it one team. The chancellor said no self-respecting minister would accept those terms.”
In other reshuffle moves:
- Former Brexit Secretary Stephen Barclay becomes chief secretary to the Treasury
- Paymaster General Oliver Dowden is the new culture secretary, replacing Baroness Morgan
- Northern Ireland Secretary Julian Smith has been replaced by Home Office Minister Brandon Lewis
- Business Secretary Andrea Leadsom and Housing Minister Esther McVey are out of government
- Environment Secretary Theresa Villiers is sacked and replaced by George Eustice, who resigned as a minister last year over Theresa May’s Brexit plans
- Attorney General Geoffrey Cox was asked to resign by the PM. He is replaced by former Brexit Minister Suella Braverman
- Priti Patel remains as home secretary
- Dominic Raab remains as foreign secretary
- Michael Gove remains in his role as minister for the Cabinet Office
Health Secretary Matt Hancock is staying in his post, and Liz Truss will carry on as international trade secretary and minister for women and equalities.
Transport Secretary Grant Shapps, Defence Secretary Ben Wallace and Leader of the House Jacob Rees-Mogg also keep their roles.
International Development Secretary Alok Sharma has been appointed business secretary and minister for the upcoming climate conference COP26, in Glasgow.
He is being replaced at the international development department by Armed Forces minister Anne-Marie Trevelyan.
Boris Johnson is expected to appoint a new minister to oversee the building of the HS2 rail line,