Rishi Sunak plotting mini cabinet reshuffle as he looks to replace Zahawi

PM also expected to break up business department into separate ministries

Rishi Sunak is expected to unveil a mini-reshuffle as early as Tuesday as he replaces sacked Tory chair Nadhim Zahawi and tries to boost his party’s disastrous poll ratings

The prime minister is said to be preparing a broader Whitehall shake-up as well as naming a successor for Mr Zahawi, sacked for breaching the ministerial code over his tax affairs.

It is understood that the PM is considering breaking up the Department for Business, Energy and Industrial Strategy (BEIS) into a series of separate ministries.

Describing plans for a “100-day reshuffle”, The Sun cited Whitehall insiders as it claimed that Mr Sunak could create a new energy department, with business and trade merged.

Mr Sunak could also break up Michelle Donelan’s digital, culture, media and sport department, making culture and sport a standalone office, with a new ministry dedicated to science and digital.

A source told the outlet: “The focus is making government work better but in reality, it leaves senior ministers looking over their shoulder and leaves a big question over the future of Raab who faces a bullying inquiry.”

Deputy PM Dominic Raab is expected to survive the mini-reshuffle, according to The Times, despite growing pressure for him to stand down as the official investigation into bullying allegations continue.

A reconfiguration at BEIS would create a domino effect of changes in the cabinet – raising questions over the future of business secretary Grant Shapps and international trade secretary Kemi Badenoch.

Cabinet ministers thought to be under consideration to succeed Mr Zahawi include Mr Shapps, Commons leader Penny Mordaunt and trade minister Greg Hands.

Downing Street declined to comment on the mini reshuffle claims, but did not guide away from a imminent shake-up. Mr Sunak is expected to chair a cabinet meeting at 10.30am this morning.

Development minister Andrew Mitchell also declined to comment on reports, saying it was “above my paygrade”. Mr Mitchell is another of those linked to the role of Tory chairman to replace Mr Zahawi.

He told GB News: “Well, these are matters way above my paygrade and they are matters for the prime minister, but I’m very happy indeed doing a job which I’ve done before and loved very much, which is the international development job.”

Rishi Sunak convenes his cabinet on Tuesday morning (PA Wire)

Mr Mitchell also defended the position of Mr Raab, amid calls for him to stand aside while an investigation is ongoing into bullying allegations, saying there is a “process around these allegations” and it “should be followed”.

With last week marking the 100-day anniversary of Mr Sunak’s vow on the steps of No 10 to lead a government of “integrity”, pressure intensified on the PM to replace Mr Raab, who strenuously denies bullying claims.

Mr Zahawi became the second of Mr Sunak’s ministers to leave his post, more than six months after The Independent first revealed details of an HMRC investigation into his tax affairs.

His exit followed Sir Gavin Williamson’s resignation in November as the minister without portfolio sought to “clear my name of any wrongdoing” over bullying allegations.

Fresh Savanta ComRes polling for The Independent reported at the weekend found that more than one-third of Conservative voters view the Tories as “the party of sleaze” – with just 11 per cent viewing Mr Sunak’s party as “moral”.

A recent poll by Ipsos gave Labour a huge 25-point lead over the Tories, with Sir Keir Starmer’s party leading Mr Sunak’s by 51 points to 26.