David Cameron's first Cabinet in 2010. Photo: Getty
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LIVE: Who's in and who's out - the full reshuffle list

Michael Gove down, Ken Clarke out, Nicky Morgan on the up: all the latest on the Cabinet reshuffle.

Throughout the day, we'll be keeping an updated list of all the latest appointments, demotions and sackings from the Cabinet reshuffle. Here's the latest:

 

Chancellor

George Osborne HOLD

As the economic recovery continues, Cameron has kept his No 2 in place to remain working on the “longterm economic plan”.

Home Secretary

Theresa May HOLD

Despite the recent passport office fiasco and the botched appointment of Baroness Butler-Sloss to head the child sex abuse inquiry, May has survived as the most senior women in the Government.

Foreign Secretary

Out: William Hague

Hague has been moved to Leader of the Commons, so will remain as one of David Cameron’s right hand men until he steps down from Parliament next year.

In: Philip Hammond

A known Eurosceptic who has voiced his view that Britain should leave the EU unless more powers are repatriated, Hammond will now be central to those negotiations in Brussels.

Defence Secretary

Out: Philip Hammond

In: Michael Fallon

Previously presiding over a diverse ministerial portfolio including energy, business enterprise and the city of Portsmouth, Fallon, known for his crisis-management skills, has been promoted to the Cabinet.

Education Secretary

Out: Michael Gove

Demoted to Chief Whip, Gove’s controversial education reforms made him unpopular with teachers and he was damaged by a recent high-profile spat with May; now to do more broadcast for the government.

In: Nicky Morgan

An acolyte of George Osborne in her former Financial Secretary to the Treasury role, Morgan’s was one of the top female promotions; she was also awarded equalities brief, a controversial choice given she voted against same sex marriage.

Defra Secretary

Out: Owen Paterson

The right-wing climate change sceptic has been demoted from the Cabinet, leading environmental groups to crow. His handling of the winter floods and badger culling exercise had been widely criticised.

In: Liz Truss

Described as a “human hand grenade” while Education Minister, feisty and ambitious Truss was the second women to be appointed Secretary of State today.

Chief Whip

Out: Sir George Young 

The 72-year-old is out of the Cabinet altogether; he is set to retire from Parliament at next May’s election after 41 years as an MP.

In: Michael Gove

Leader of the House

Out: Andrew Lansley

Demoted from the Government, Lansley has also lost out on the nomination to be Britain’s European Commissioner, a role for which he was widely touted – a bad day.

In: William Hague

Welsh Secretary

Out: David Jones

The Welsh-speaker and proud Welshman returns to the back benches after less than two years.

In: Stephen Crabb

Formerly Jones’ deputy, the MP for Preseli Pembrokeshire is the only man sporting a beard to enter the Cabinet.

Universities Minister

Out: David Willetts

Known as “Two brains”, Willetts immediately announced his intention to step down as an MP next year following his resignation last night.

In: Greg Clark

Clark added universities to his brief and will also continue as minister for cities and local growth.

Leader of the House of Lords

Out: Lord Hill

Cameron has selected the respected peer as Britain’s nominee for European Commissioner, avoiding sparking a by-election if he had chosen an MP.

In: Baroness Stowell

Last year the former No 10 aide to John Major steered the gay marriage Bill through the Lords, after which she was promoted to the role of communities and local government minister.

Attorney General

Out: Dominic Grieve

The Government’s most senior legal adviser since 2010 was demoted from the Cabinet; he has admitted he is “sad” to lose the role.

In: Jeremy Wright

Previously junior justice minister, Wright has kept a low profile: Sky’s Adam Boulton admitted today that he would struggle to pick Wright out in an identity parade.

Minister of State for Business, Enterprise and Energy

Out: Michael Fallon

In: Matthew Hancock (who will attend Cabinet, and be minister for Portsmouth)

Clearly forgiven for posing in front of “Sack Cameron” graffiti last week, he reportedly used to prep the Prime Minister before PMQs and is another of Osborne’s protégés to rise.

Minister of State for the Home Office and Ministry of Justice (police minister)

Out: Damian Green

Sacked last night, Green’s departure was described as “inexplicable” by political commentator Ian Dale, who noted him as a “good media performer and original thinker”.

In: Mike Penning

The former fireman has been promoted after being appointed disabilities minister last October.

Minister of State for Business and Education

Out: Matthew Hancock

In: Nick Boles (he will also have responsibility for equal marriage legislation)

Formerly Minister for Planning and Development, Boles will now preside over adult skills, apprenticeships and business support.

Minister of State for the Department of Work and Pensions (minister for disabled people)

Out: Mike Penning

In: Mark Harper

After resigning swiftly and honourably earlier this year when he discovered his cleaner was working in the UK illegally, Harper has been restored to a post in the Government.

Minister of State for the Cabinet Office

In: Jo Johnson

Previously heading up David Cameron’s policy unit and a junior Cabinet Office minister, Boris’s brother has been promoted to minister of state.

Financial Secretary to the Treasury

Out: Nicky Morgan

In: David Gauke

Previously the Exchequer Secretary, Gauke has been bumped up a notch in the Treasury.

Minister of State for Transport

In: John Hayes

Hayes will also carry on as a Cabinet Office minister, where his role was described as the Prime Minister’s envoy to the backbenches.

Lord Privy Seal

Out: Andrew Lansley

In: Oliver Letwin

A Cabinet Office minister for government policy, Letwin’s promotion today has been described as tokenistic.

Exchequer Secretary to the Treasury

Out: David Gauke

In: Priti Patel

The right-wing former PR executive joined the government and will now deal with tax policy.

Minister for Schools

Out: Liz Truss

In: Nick Gibb

Returning to his old post, Gibb will be “working with Nicky Morgan to ensure no let up in education reforms”, according to a tweet by Cameron.

Parliamentary Secretary

Out: Jo Johnson

In: Brooks Newmark (he will also be minister for civil society)

The Braintree MP has joined the Government. Formerly a whip between 2010 and 2012.

Minister for Communities

Out: Baroness Stowell

In: Brandon Lewis

Local government minister Lewis was promoted to Minister of State.

 

Other moves:

Ken Clarke, minister without portfolio, is out of the Cabinet entirely.

Nicky Morgan will hold her current position as minister for women alongside the education brief.

Also out are Nick Hurd, minister for civil society (replaced by Brooks Newmark); Alan Duncan, international development minister (replaced by Desmond Swayne, a former whip); Greg Barker, energy minister.

Lord Hill is nominated for European Commissioner.

Esther McVey, employment minister (number two in the Department of Work and Pensions) will stay there, but attend Cabinet meetings.

Anna Soubry moves up to minister of state at Defence.

Penny Mordaunt is a parliamentary under secretary at Communities and is responsible for coastal communities.

Amber Rudd becomes a parliamentary under secretary at the department of energy and climate change. 

Claire Perry becomes a parliamentary under secretary at transport with responsibility for rail.

Robert Buckland is the new solicitor-general.

Julian Brazier becomes a junior defence minister.

George Freeman becomes minister for life sciences.

Ed Vaizey becomes minister for digital industries.

Andrew Murrison moves from defence to join the Northern Ireland office as a junior minister.

Oliver Letwin remains as minister for government policy and becomes Lord Privy Seal.

Alun Cairns becomes parliamentary under secretary for the Wales office and will be Government Whip.

Sam Gymiah becomes parliamentary under secretary at the Department for Education.

Mel Stride, Therese Coffey, Ben Wallace and Damian Hinds become Assistant Government Whips.

Over at the Spectator, Fraser Nelson is reporting that Liam Fox was offered a minister of state role at the Foreign Office, but declined it. Fox has now confirmed this.

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The top 10 reasons Brexit isn't working, according to Brexiteers

We'd have got away with it, if it weren't for that pesky Mark Carney. 

Over the next few years, it is likely that the economy will shrink, that the entire government will be consumed by trade negotiations at the expense of every other priority, and that EU leaders will use their considerable negotiation advantages to theatrically screw us. As this unpretty story unfolds, those who argued confidently for Brexit, in parliament and in the press, will feel compelled to maintain that they were right, and that if it hadn’t been for some other impossible-to-foresee factor everything would be going splendidly. What follows is an attempt to anticipate the most predictable post-rationalisations; I’m sure there will be more creative efforts.

1. WHITEHALL SABOTAGE. If we’re making no progress in trade negotiations, that’s because the civil service is doing its best to scupper a successful Brexit. That power-crazed madman Jeremy Heywood will stop at nothing to ensure he is bossed by Brussels, and the snooty bastards at the Treasury are working to subvert the national will out of spite. Even as our finest ministers strive manfully to cut Britannia free of its enslaving chains, all they hear from functionaries is “It’s a bit more complicated than that”. It’s only complicated because they want it to be.
 

2. REMAINERS TALKING DOWN THE COUNTRY. God knows we tried to reach out to them, with our gently teasing admonitions for being elitist snobs who just needed to get over it. But did they concede that a glorious future is at hand, if only we all wish for it? No, my friends, they did not. Instead, they sulkily point out how the things they predicted would happen are in fact happening, as if this somehow proves they were right. And since, inexplicably, the world agrees them, the whiners’ prophecy is being fulfilled.
 

3. THE GLOBAL ECONOMY. It appears the UK economy has sunk into a recession. Now, the whiners will tell you that this has got something to do with the vast uncertainty created by taking a fundamental decision about the nation’s future without a clue about how to implement it. In reality, of course, the recession has been caused by the same global economic headwinds that had absolutely nothing to do with the 2008 financial crisis, which was all Gordon Brown's fault.
 

4. ECONOMISTS. Since they nearly all said that Britain would be worse off if it voted Out, they now feel compelled to tell us that things are indeed worse. OK, maybe they are worse. But think about it: if we hadn’t voted Out, the economy might be even more calamitously buggered than it is now. This is logically unassailable. But do economists ever point it out? Do they Brussels. Yet sadly, global businesses, investors, consumers, and lots of other people who frankly lack gumption or vision, take these so-called experts seriously.
 

5. MARK CARNEY. Let’s get this straight: the Canadian governor of the Bank of England doesn’t want Britain to succeed, because then we’d be a direct competitor to his motherland. But with his honeyed voice and perpendicular jaw and incessant references to “data”, this man has gone a long way to convincing much of the public that he is some kind of disinterested authority on Britain’s economy. In reality, of course, he is out to destroy it, and seems to be making a pretty good fist of doing so.
 

6. EU BUREAUCRATS. You know those people we spent years attacking for being interfering, self-enriching, incompetent fools? Turns out they are now keen to make our lives as difficult as possible. The way to deal with this, of course, is to mount a national campaign of vilification. Another one. Before long they will be begging for mercy.
 

7. THERESA MAY. Look, we all wanted her to succeed. We knew she wasn’t one of us, but she wasn’t exactly one of them either, so we gave her a chance. Yet perhaps it is time to admit the possibility that the Prime Minister isn’t making this work because, when it comes down to it, she just doesn’t share our blood-pumping, sap-extruding belief in Britain unbound. In short, she’s just too damn reasonable. It’s time to embrace the unreasonable man. What’s Boris doing these days?
 

8. THOSE OTHER BREXITEERS (i). Not only can we not get the Remainers to present a united front to Brussels, it seems that we can’t even rely on our fellow Brexiteers. Most of us are on the same page: take back control of our borders, blue passports, compulsory blazers, onwards and upwards to the sunlit uplands. But there are some among our own ranks who frankly don’t get it. These latte-sipping media types simper on endlessly about the importance of retaining access to the single market and seem awfully keen on Norway. Why don’t they just go and join Remain?
 

9. THOSE OTHER BREXITEERS (ii). Hey guys, the problem is this: Brexit got hijacked by the roast beef and two veg brigade, OK? For us it was always about unleashing the entrepreneurial spirit, shaking off the dead hand of Eurocrat regulation, being more human, that kind of thing. We had to go along with all that anti-immigration stuff but believe me we were biting our tongues and crossing our fingers. Some of our best friends are Turkish.
 

10. NONSENSE, IT IS WORKING.

Ian Leslie is a writer, author of CURIOUS: The Desire to Know and Why Your Future Depends On It, and writer/presenter of BBC R4's Before They Were Famous.