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Boris Johnson is planning a cabinet reshuffle following local election losses and the ongoing cost of living crisis.
The Prime Minister wants to freshen up his top team in the summer, Whitehall sources have said.
His plans come as the Conservatives lost almost 500 seats and control of 11 councils in local elections.
The party lost Westminster Council with Labour seizing control for the first time since 1964. They also lost flagship councils in Wandsworth and Barnet.
However losses were fewer than feared in so called Red Wall areas which were traditionally Labour controlled but fell to the Conservatives in the last general election.
A source told Sky News the Prime Minister would hold a reshuffle within two months to “put in place the team who will take us into the next election”.
He is also expected set out a new agenda for dealing with the cost of living crisis with families squeezed by rising energy and food prices and a hike in interest rates.
The source said of the expected reshuffle: “There will be a reset moment in the next couple of months. The PM will set out to the public the things they can expect us to concentrate on in the run-up to the next election. You can expect to see the cost of living at the top of that.”
The prime minister is considering making Priti Patel, currently Home Secretary, the Tory Party chairman, according to a separate source.
Meanwhile senior Tories have demanded the Government to introduce tax cuts to ease the cost of living.
Ex-leader Sir Iain Duncan Smith said: “It is no good promising tax cuts in the future when people are struggling now. The PM has to overrule the Chancellor on this.”
Former Cabinet minister Sir John Redwood said tax cuts should be “at the heart” of next week’s Queen’s Speech.
A Government source said ministers would consider “more help” on fuel bills later this year if costs continue to rise.
The prime minster joined an art class at Field End Infant School in Ruislip, west London on Friday and conceded the election results were “mixed” and referred to mid term polls being traditionally difficult for ruling parties.