Sajid Javid has resigned from his position as Chancellor after reportedly refusing to sack his advisers.

Former chief secretary to the Treasury Rishi Sunak is expected to replace Javid with less than a month to go before the Spring Budget is currently scheduled to take place.

Sunak served as a junior housing minister between January 2018 to July last year.

The BBC’s political editor Laura Kuenssberg says Javid quit after rebelling against the Prime Minister’s order that he sack his key advisers.

She tweeted: “Hear that Javid was offerered to stay on as Chancellor on condition he fired all of his advisers – he refused and turned down job previously.”

The news follows the sacking of housing minister Esther McVey and business secretary Andrea Leadsom earlier today in a cabinet reshuffle.

Political strategist Dominic Cummings is reportedly creating a joint Downing Street and Treasury special advisor unit.

Hargreaves Lansdown head of policy Tom McPhail says: “The resignation of the Chancellor just a few weeks ahead of the Budget was definitely not in the script. 

“Given the new Chancellor’s relative lack of a power base and rapid ascent of the political ladder, the forthcoming Budget will probably be more of the Prime Minister’s making than would otherwise have been the case; this increases the likelihood of a bold Budget with populist spending announcements. 

“The trade-off is it probably also increases the likelihood of targeted tax raids to pay for the Prime Minister’s largesse. 

Javid had been reported to be examining some potentially contentious policy moves, such as a mansion tax and cuts to pension tax relief for the wealthy and I think today’s announcement escalates that risk.”

Saxo Markets head of global sales trading Adam Seagrave says: “The initial reaction has been weaker GBP but we are now seeing a rally to a new high. 

“This is presumably the market interpreting the announcement as Boris wanting advisors who are more willing to back aggressive fiscal stimulus.”