Kemi Badenoch has removed Sir Mel Stride as Shadow Chancellor and appointed Andrew Griffith in his place as the Conservative leader carries out a major overhaul of her top team.
Griffith, who had been serving as Shadow Business Secretary, will now lead the Conservatives' economic operation, while Claire Coutinho moves into Griffith's former business brief.
The changes were confirmed on Monday as Badenoch's wider Shadow Cabinet reshuffle gathered pace ahead of Parliament's return and the Conservative Party conference in October.
Stride removed as Badenoch reshapes economic team
Stride's departure is one of the most significant changes in the reshuffle because it replaces the senior Conservative responsible for challenging the Government on taxation, spending and the public finances.
ITV News reported that Badenoch had ousted Stride and appointed Griffith as his successor, while The Independent also reported that Stride had been sacked as part of the shake-up.
The Times likewise reported that Stride had been removed from the Shadow Chancellor post and would return to the back benches.
The change means the Conservatives will enter the autumn political season with a new figure leading their economic message.
Andrew Griffith promoted to Shadow Chancellor
Griffith moves to the Treasury brief after serving as Shadow Business Secretary.
The appointment gives him responsibility for leading the Conservative response to Chancellor John Healey on taxation, borrowing, spending and wider economic policy.
His promotion also places him at the centre of the party's attempt to rebuild its economic credibility and sharpen its offer to voters ahead of the next general election.
Griffith has previously argued for a more growth-focused Conservative approach, with an emphasis on lower taxation, deregulation and a smaller state.
Coutinho takes over business brief
Claire Coutinho will replace Griffith as Shadow Business Secretary.
She had previously been serving as Shadow Energy Secretary and had already been expected to step away from that brief during maternity leave.
Her move means Badenoch is not simply filling vacancies created by departures but actively reorganising the Conservatives' economic and business team.
The business brief will give Coutinho responsibility for challenging the Government on regulation, investment, industrial policy and the wider operating environment for British firms.
Another major departure from Badenoch's top team
Stride joins a growing list of senior Conservatives leaving the Shadow Cabinet during Badenoch's reshuffle.
Dame Priti Patel has returned to the back benches after leaving the Shadow Foreign Secretary role and taking on a new international position within the Conservative Party.
Sir James Cleverly has also left the Shadow Cabinet to pursue the Conservative nomination for Mayor of London, while Stuart Andrew has departed as Shadow Health Secretary.
Tom Tugendhat has returned to frontline politics to take over the foreign affairs brief.
Reshuffle becomes wider reset
The removal of a sitting Shadow Chancellor makes clear that Badenoch is using the reshuffle for more than routine housekeeping.
While some changes were forced by departures and maternity leave, replacing Stride represents a direct intervention in one of the Conservatives' most important policy areas.
That makes the economic team one of the clearest areas in which Badenoch is putting her own stamp on the opposition front bench.
The move comes at a politically sensitive moment, with the Government under pressure over borrowing costs, public spending, defence commitments and the approach to the autumn Budget.
Griffith will now be responsible for turning those pressures into a coherent Conservative economic attack while also setting out the party's own alternative.
Pressure shifts to Griffith
The promotion gives Griffith one of the most exposed jobs in opposition politics.
As Shadow Chancellor, he will be expected not only to criticise the Government's economic record but also to explain how Conservative plans on tax, spending and regulation would add up.
That challenge is likely to become more intense as the next Budget approaches and the fiscal debate moves back to the centre of Westminster politics.
For Badenoch, the reshuffle is increasingly looking like a broad reset of the team she wants to take into the next phase of opposition.