The chancellor Sajid Javid has resigned after a reported row with Boris Johnson over his advisers.
He had been due to deliver a budget in less than a month.
It comes on the morning that Boris Johnson carried out a cabinet reshuffle, firing eight of his ministers.
His shock resignation came amid reports that Mr Javid had a huge falling out with Mr Johnson’s advisor Dominic Cummings, over a proposes restructuring of his staff.
Mr Javid was offered to stay on as chancellor on condition he fired all of his advisers – he refused and turned down the job, the BBC reported.
Rishi Sunak is set to replace him as chancellor.
A number of senior ministers, including the Attorney General, were sacked by Boris Johnson this morning, as the prime minister carried out his first major reshuffle since the Conservatives’ election victory.
However, Mr Javid had been widely expected to keep his job in the Cabinet shakeup.
Andrea Leadsom lost her job as Business Secretary and Esther McVey was dismissed as Housing Minister.
Theresa Villiers has also been sacked as environment secretary, along with Transport ministers Nus Ghani and George Freeman who, upon losing his job, tweeted: ‘On my bike.’
More to follow