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David Cameron plans first major government reshuffle David Cameron moves Andrew Mitchell as reshuffle begins
(about 1 hour later)
David Cameron is finalising a reshuffle his ministers, in the first major shake-up of government since the coalition came to power in 2010. David Cameron has moved Andrew Mitchell from International Development Secretary to government chief whip, as he starts his first major reshuffle.
The changes, which could come as early as Tuesday, are likely to mean a return to office for Lib Dem David Laws. The prime minister is also expected to bring Liberal Democrat David Laws back as speculation mounts over the future of several cabinet members.
The chancellor, home secretary and foreign secretary are expected to keep their jobs, but several other cabinet ministers could be moved. But the chancellor, home secretary and foreign secretary are all expected to keep their jobs.
The reshuffle comes amid growing Tory concern over economic strategy. The reshuffle comes amid growing Tory concern over the coalition.
Senior MP David Davis has warned that "shock therapy" is needed to end the recession, urging further tax and spending cuts to promote growth. Mr Cameron is finalising the details of the reshuffle, the first major shake-up since the Conservative-Liberal Democrat government came to power in 2010.
On Sunday, Mr Cameron said he wanted to "cut through the dither" that was holding the British economy back. Tuesday morning's cabinet meeting has been cancelled to allow the prime minister to deal with the reshuffle.
'Big story' 'Having a curry'
Tuesday morning's cabinet meeting has been cancelled because of the reshuffle. BBC political editor Nick Robinson has learned that Mr Mitchell, a former soldier, will replace Patrick McLoughlin as government chief whip, whose main role is to get Conservative MPs to vote in favour of coalition legislation. Mr Mc Loughlin's new role has not been revealed.
BBC political editor Nick Robinson said changes were unlikely to affect Chancellor George Osborne, Home Secretary Theresa May and Foreign Secretary William Hague. Any cabinet changes are thought unlikely to affect Chancellor George Osborne, Home Secretary Theresa May and Foreign Secretary William Hague.
However, most other ministers could not be "sure about their futures", he added. However, most other ministers could not be "sure about their futures", our correspondent said.
There has been speculation about possible moves for Justice Secretary Ken Clarke, Welsh Secretary Cheryl Gillan and International Development Secretary Andrew Mitchell.
There has been speculation about possible moves for Justice Secretary Ken Clarke, Health Secretary Andrew Lansley, Culture Secretary Jeremy Hunt, Conservative chairman Baroness Warsi and Welsh Secretary Cheryl Gillan.
Leaving the Houses of Parliament, Mr Clarke was asked if he had any details of the reshuffle, replying: "The only news is I'm off to have a curry."Leaving the Houses of Parliament, Mr Clarke was asked if he had any details of the reshuffle, replying: "The only news is I'm off to have a curry."
Former Liberal Democrat cabinet minister David Laws is expected to return to the government in some capacity - two years after resigning as chief secretary to the Treasury after admitting he claimed expenses to pay his partner's rent.Former Liberal Democrat cabinet minister David Laws is expected to return to the government in some capacity - two years after resigning as chief secretary to the Treasury after admitting he claimed expenses to pay his partner's rent.
Lady Warsi has appealed to David Cameron to allow her to keep her post in any reshuffle.
Conservative Party chairman Baroness Warsi has appealed to David Cameron to allow her to keep her post in any reshuffle.
She said she would like to "stay doing what I'm doing" and argued that as a northern, female Muslim she could help the party attract a new generation of voters.She said she would like to "stay doing what I'm doing" and argued that as a northern, female Muslim she could help the party attract a new generation of voters.
Housing minister Grant Shapps, employment minister Chris Grayling and minister for disabled people Maria Miller are among Conservatives tipped for promotion.Housing minister Grant Shapps, employment minister Chris Grayling and minister for disabled people Maria Miller are among Conservatives tipped for promotion.
But Tory MP John Redwood, who served as a cabinet minister in the 1990s, said the reshuffle was not "the big story" and it was more important for the government to create a plan to "turn this economy round in time". The reshuffle comes after several Conservative MPs accused the coalition of not doing enough to promote economic growth.
'Painful' Former shadow home secretary David Davis has urged ministers to deliver "shock therapy", with more tax and spending cuts pushed through.
Meanwhile, the government has said it will underwrite up to £50bn of private sector building projects which need finance. The government has said it will underwrite up to £50bn of private sector building projects which need finance.
The Treasury said the The Infrastructure (Financial Assistance) Bill, which builds on a scheme launched in July, will give the allow £40bn of construction projects by using the government's low interest rates to underwrite them. The Treasury said it would build on on a scheme launched in July, allowing £40bn of construction projects by using the government's low interest rates to underwrite them.
Ministers are also expected to set out plans to underwrite construction of up to £10bn worth of new homes, including guaranteeing the debt of housing associations and private sector developers.Ministers are also expected to set out plans to underwrite construction of up to £10bn worth of new homes, including guaranteeing the debt of housing associations and private sector developers.
In addition, the government will legislate to speed up planning decisions and encourage development of Green Belt land, if certain conditions are met.In addition, the government will legislate to speed up planning decisions and encourage development of Green Belt land, if certain conditions are met.