Mr Javid resigned after being asked to sack all of his advisors by the Prime Minister as the Cabinet reshuffle continues. Chief Secretary to the treasury, Rishi Sunak will take Mr Javid’s place as Chancellor of the Exchequer.
In a statement, a source for Mr Javid said: “They wanted to take control of the whole operation.
“There was going to be a whole new set up and they wanted to be in charge of it.
“Sajid didn’t know it was coming and said no.”
The resignation of Mr Javid comes just 28 days before the Chancellor must deliver the budget.
The source added: “The Prime Minister said he had to fire all his special advisers and replace them with No 10 special advisers to make it one team.
“The Chancellor said no self-respecting minister would accept those terms.”
The former Chancellor has clashed with Mr Johnson and his top aide, Dominic Cummings in the past.
Last year, Treasury adviser, Sonia Khan was sacked over her links to former Chancellor, Philip Hammond.
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Northern Ireland Secretary, Julian Smith and Business Secretary, Andrea Leadsom had also been sacked.
Following the pair, housing minister Esther McVey and Environment Secretary, Theresa Villiers have also lost their positions.
Attorney General, Geoffrey Cox was also asked to resign.
Although he remains a close ally to Mr Johnson, Michael Gove will remain in his role as minister for the Cabinet Office.
More to follow…