Philip Hammond’s time as chancellor of the exchequer appeared to be running out last night as a source close to Theresa May signalled that he may be fired in the prime minister’s post-election reshuffle.
The senior Tory described David Davis, Amber Rudd and Boris Johnson — respectively the Brexit secretary, home secretary and foreign secretary — as key members of May’s top team, but pointedly left out the chancellor.
“DD, Boris and Amber are part of our inner circle,” the figure said, indicating that all three would remain in senior jobs.
Hammond has hardly been seen during the election campaign and has clashed repeatedly with May’s two chiefs of staff, Nick Timothy and Fiona Hill.
Timothy and Hammond are said to have exchanged expletives during rows over the budget, which culminated in a member of Hammond’s circle describing the team in No 10 as “economically illiterate”. This was understood to be repeating a view held by the chancellor, who disapproves of May and Timothy’s taste for state intervention in markets.
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Moving or firing Hammond would be seen as decisive but risks setting off a new row at the top of the Conservative Party. His possible successors are: Rudd; Greg Clark, the business secretary; Sir Michael Fallon, the defence secretary; and Damian Green, the work and pensions secretary.
Reports circulated last week about unnamed ministers discussing plans to document their rows with May’s closest aides in case they are sacked. Cabinet ministers and Whitehall officials have now identified Hammond as the minister urging others to keep notes on their exchanges with Timothy and Hill amid concern the aides need to be reined in.
“Phil is going around making clear that he has kept good notes,” said one source, “and he urged me to do the same.”
Several ministers contacted The Sunday Times last week to say that they would urge May to bring in other “heavy hitters” and change the way her office operates, even if she wins a commanding majority on Thursday.
They are concerned that the two chiefs of staff have acted as overzealous gatekeepers to May and prevented them from feeding in policy ideas to the prime minister, while overseeing No 10 and the rest of Whitehall in a “rule of fear”.
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One said: “Everyone wants to see Theresa win and win big, but things have to change. We can’t carry on with just three people in government making all the decisions.
“Theresa talked about doing away with [David] Cameron’s sofa government but when it comes to important decisions, you can put the people who matter in a large armchair.”
A longstanding Tory adviser said: “People are pissed off at the way they work. Two or three people can’t run the country on their own. They need to appoint some more good people and then let them get on and make decisions on their own without overseeing everything. People have to be allowed to make mistakes without getting bollockings all the time.”
Stephen Gilbert, a party veteran who has acted as campaign director, is tipped to go to Downing Street.
The concerns of ministers and parliamentary candidates were heightened by the manifesto, overseen by Timothy. Senior ministers had no idea about key policies until 48 hours before it was published.
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It is understood that Sir Lynton Crosby, the campaign adviser, Jeremy Hunt, the health secretary, and Sajid Javid, the communities and local government secretary, were all in the dark about key parts of the manifesto plans for social care, even though the proposals were based on work done in their departments.
Hunt and Javid are tipped to be moved or fired in the reshuffle.
The care plans were met with a raspberry by Tory voters and led to a U-turn within four days that tarnished May’s reputation for “strong and stable” leadership.
Another minister said: “You have to have secrecy around a manifesto — everyone accepts that — but it’s all too typical of how they operate all the time. Everything has to go through Fi and Nick. They have to sign off absolutely everything. When the Brexit talks get going, they’re going to have to trust the rest of us to look after our own stuff or the government is going to grind to a halt.”
Another Tory candidate, who is loyal to May and shares her views on the need to appeal to working-class as well as middle-class voters, said: “There will be blood on the carpet if nothing changes.”
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With all eyes on the likely reshuffle, the absence from the campaign trail has been noted of ministers who are out of favour with team May, including Javid, Liam Fox, Andrea Leadsom, Chris Grayling and Justine Greening.
Liz Truss is expected to relinquish her post as justice secretary. A Department for Education official claimed that they had been told by someone at the top of government that she would take over from Greening as education secretary.
Insiders say the size of May’s majority will determine whether Michael Gove is asked to return to the cabinet. A comeback is likely only if May needs to shore up support from Eurosceptics.
Hammond’s spokeswoman did not comment.