Katy Balls

It's only a few weeks until Budget day and the papers are filled with reports of the various revenue-raising measures being considered. After plans for a mansion tax were dampened down by government sources, ideas being mooted include cuts to pension tax relief and a fuel duty hike. Who the burden falls on will reveal a lot about which voters the Conservatives believe will win them an unprecedented fifth term in government. Key to this is the level of appetite in No. 10 to please the North at the expense of the South. Some reports of proposed Budget measures – including a recurring property tax – have been a cause of uproar among traditional Tories. The recently departed chancellor Sajid Javid was tied in by his fiscal rules that limit borrowing.

How do you move on from a week of torrid headlines over a power struggle between senior No. 10 aides and a recently departed Chancellor? The old Tory playbook – mastered by Boris Johnson's former election guru Lynton Crosby – would suggest throwing a dead cat. The dead cat strategy used when a party wishes to change the conversation by any means necessary. The idea is that by the time it's done people will stop talking about the thing you want to move away from and instead become distracted and effectively go: 'Jeez, mate, there's a dead cat on the table!' It's worth remembering this device when considering that we are in day three of No. 10's latest BBC row.

What are the UK’s red lines in the upcoming trade talks with the EU? Although Boris Johnson has said publicly that he will pursue a Canada-style trade deal and move to an Australia-style deal should that fail, there’s concern on the British side that Brussels is yet to take Johnson at his word when he says divergence is a crucial aspect of any deal. On Monday evening, the Prime Minister’s Europe Advisor and Chief Negotiator David Frost attempted to fix this with a lecture to students and academics at the Université libre de Bruxelles. Frost used the address to try to explain what type of new relationship the UK is seeking to build with the EU this year. Frost spoke of the UK’s path to becoming a truly sovereign nation.

Boris Johnson ends the week with a new Chancellor in tow after Rishi Sunak replaced Sajid Javid in the role. Prior to the reshuffle, Sunak had expected to remain Chief Secretary to the Treasury. Although the Tory rising star had been tipped at one point to be given his own department to run, he had privately made it known that he wanted to stay put and help the Chancellor with next month’s Budget. Sunak got his wish in part. He is staying in the Treasury. It’s just that he is now the one in charge. So, what does Sunak’s appointment mean for the direction of this government? As I say in iWeekend, although the speed of Sunak’s promotion took even his biggest supporters by surprise, he has long been talked up as a future chancellor.

Tory activists are in uproar this morning over varying reports of tax raising measures Boris Johnson and Sajid Javid are considering for next month’s Budget. Plans currently being mooted include cuts to pension tax relief and the introduction of a recurring property tax that could replace stamp duty. Critics have been quick to say that neither proposal fits with what the Tory party traditionally claims to want to do – rather than new taxes and limits Johnson ought to be pushing for tax cuts. However, the view in both No. 10 and No. 11 is that this is the year for tough – and potentially unpopular – decisions.

On Thursday, Boris Johnson will reshuffle his cabinet for the first time since winning a majority of 80. Soon after the election result, there was talk of a Valentine's Day massacre in which multiple ministers would lose their jobs. However, in recent weeks there have been suggestions that it won't be as drastic a reorganisation as first expected. This is in part because the accompanying Whitehall reorganisation has been scaled down – though some departments are still to be merged. While conversations over the reshuffle are ongoing, certain themes have emerged. Since MPs returned to Parliament from the Christmas recess, No. 10 have used the threat of a looming reshuffle to try to change ministers' behaviour. As I first reported in the i paper, No.