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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After Richmond Park, Labour MPs are haunted by a familiar ghost

Labour MPs in big cities fear the Liberal Democrats, while in the north, they fear Ukip. 

The Liberal Democrats’ victory in Richmond Park has Conservatives nervous, and rightly so. Not only did Sarah Olney take the votes of soft Conservatives who backed a Remain vote on 23 June, she also benefited from tactical voting from Labour voters.

Although Richmond Park is the fifth most pro-Remain constituency won by a Conservative at the 2015 election, the more significant number – for the Liberal Democrats at least – is 15: that’s the number of Tory-held seats they could win if they reduced the Labour vote by the same amount they managed in Richmond Park.

The Tories have two Brexit headaches, electorally speaking. The first is the direct loss of voters who backed David Cameron in 2015 and a Remain vote in 2016 to the Liberal Democrats. The second is that Brexit appears to have made Liberal Democrat candidates palatable to Labour voters who backed the party as the anti-Conservative option in seats where Labour is generally weak from 1992 to 2010, but stayed at home or voted Labour in 2015.

Although local council by-elections are not as dramatic as parliamentary ones, they offer clues as to how national elections may play out, and it’s worth noting that Richmond Park wasn’t the only place where the Liberal Democrats saw a dramatic surge in the party’s fortunes. They also made a dramatic gain in Chichester, which voted to leave.

(That’s the other factor to remember in the “Leave/Remain” divide. In Liberal-Conservative battlegrounds where the majority of voters opted to leave, the third-placed Labour and Green vote tends to be heavily pro-Remain.)

But it’s not just Conservatives with the Liberal Democrats in second who have cause to be nervous.  Labour MPs outside of England's big cities have long been nervous that Ukip will do to them what the SNP did to their Scottish colleagues in 2015. That Ukip is now in second place in many seats that Labour once considered safe only adds to the sense of unease.

In a lot of seats, the closeness of Ukip is overstated. As one MP, who has the Conservatives in second place observed, “All that’s happened is you used to have five or six no-hopers, and all of that vote has gone to Ukip, so colleagues are nervous”. That’s true, to an extent. But it’s worth noting that the same thing could be said for the Liberal Democrats in Conservative seats in 1992. All they had done was to coagulate most of the “anyone but the Conservative” vote under their banner. In 1997, they took Conservative votes – and with it, picked up 28 formerly Tory seats.

Also nervous are the party’s London MPs, albeit for different reasons. They fear that Remain voters will desert them for the Liberal Democrats. (It’s worth noting that Catherine West, who sits for the most pro-Remain seat in the country, has already told constituents that she will vote against Article 50, as has David Lammy, another North London MP.)

A particular cause for alarm is that most of the party’s high command – Jeremy Corbyn, Emily Thornberry, Diane Abbott, and Keir Starmer – all sit for seats that were heavily pro-Remain. Thornberry, in particular, has the particularly dangerous combination of a seat that voted Remain in June but has flirted with the Liberal Democrats in the past, with the shadow foreign secretary finishing just 484 votes ahead of Bridget Fox, the Liberal Democrat candidate, in 2005.

Are they right to be worried? That the referendum allowed the Liberal Democrats to reconfigure the politics of Richmond Park adds credence to a YouGov poll that showed a pro-Brexit Labour party finishing third behind a pro-second referendum Liberal Democrat party, should Labour go into the next election backing Brexit and the Liberal Democrats opt to oppose it.

The difficulty for Labour is the calculation for the Liberal Democrats is easy. They are an unabashedly pro-European party, from their activists to their MPs, and the 22 per cent of voters who back a referendum re-run are a significantly larger group than the eight per cent of the vote that Nick Clegg’s Liberal Democrats got in 2015.

The calculus is more fraught for Labour. In terms of the straight Conservative battle, their best hope is to put the referendum question to bed and focus on issues which don’t divide their coalition in two, as immigration does. But for separate reasons, neither Ukip nor the Liberal Democrats will be keen to let them.

At every point, the referendum question poses difficulties for Labour. Even when neither Ukip nor the Liberal Democrats take seats from them directly, they can hurt them badly, allowing the Conservatives to come through the middle.

The big problem is that the stance that makes sense in terms of maintaining party unity is to try to run on a ticket of moving past the referendum and focussing on the party’s core issues of social justice, better public services and redistribution.

But the trouble with that approach is that it’s alarmingly similar to the one favoured by Kezia Dugdale and Scottish Labour in 2016, who tried to make the election about public services, not the constitution. They came third, behind a Conservative party that ran on an explicitly pro-Union platform. The possibility of an English sequel should not be ruled out.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.