A cabinet minister has admitted there are “always disagreements” and “creative tension” between the prime minister and chancellor amid reports that Boris Johnson threatened to demote Rishi Sunak.
Kwasi Kwarteng, the business secretary, however, stressed that Mr Johnson was “100 per cent” behind the chancellor and that the pair worked “very closely” together – despite claims of strained relations.
Reports suggested Mr Johnson had “ranted” about the chancellor and suggested he might be removed from the role and be made health secretary in a meeting with around a dozen officials at No 10.
The prime minister was said to be furious after correspondence from Mr Sunak to his private office — calling for a significant easing of travel restrictions — was leaked to the media last week, according to The Sunday Times.
Pressed on the row, Mr Kwarteng insisted on BBC Radio 4’s Today programme the chancellor and prime minister “get on very well generally” and have been focused on the response to the Covid-19 pandemic.
But when quizzed on whether he would acknowledge disagreements over levels of government spending, he replied: “There are always disagreements, there’s always going to be a slight creative tension perhaps between No 10 and No 11.
“I can’t remember a time in the last 30 years when there haven’t been debates and conversations between the prime minister and the chancellor.
“I happen to think as I’ve said that this prime minister and this chancellor are working very closely together and they are as a cohesive as any kind of relationship of that kind that I’ve seen.”
Mr Kwarteng added that he didn’t think there was any prospect of Mr Sunak being moved to the Department of Health and Social Care (DHSC) and stressed during a separate interview on Monday that the prime minister and everyone in cabinet “is 100 per cent behind him”.
However, allies of the chancellor told The Times that the prime minister risked losing direction “completely” if removed Mr Sunak as chancellor, telling the newspaper: “He would have the most likely contender to replace him on the backbenches. He’s not going to take a demotion. That would be ridiculous.”
On Monday, a No 10 spokesperson insisted Mr Johnson had full confidence in the chancellor, claiming there were no imminent plans for a cabinet reshuffle. “The prime minister and the chancellor have always enjoyed a close and effective working relationship, and will continue to do so,” they added.
Seizing on the row, Labour’s chief secretary to the Treasury, Bridget Phillipson, urged Mr Johnson to urgently “get a grip on the real challenges facing this country”.
She added: “The Covid pandemic continues, tens of thousands of livelihoods are still at risk, the climate crisis threatens our planet but he’s busy picking fights with his own government and threatening to sack the chancellor. It’s completely disgraceful.”
Lib Dem leader Ed Davey added: “After the calamity of the past two years, the prime minister should look in the mirror and demote himself before worrying about the rest of them.”