Osborne urged to go over

addressed. He promised a referendum if a significant transfer of power to Brussels was proposed.

In October 2010, six months after he entered Downing Street, 37 Tory MPs rebelled, demanding action on the UK’s contribution to the EU budget.

A year later, 81 of his MPs defied a three-line whip to demand a referendum, as dissatisfaction at the constraints of coalition government and irritation at Mr Cameron’s perceived high-handedness mounted on the back benches. Constituency associations grew increasingly fractious. Ukip was on the march and the threat of European elections just a year before the next general election was looming. Parliamentary rebellions mounted.

It was clear the sceptics could not be assuaged by sticking plaster and friendly chats at Chequers. As former Chancellor and Europhile Ken Clarke put it: “If you want to go feeding crocodiles, then you’d better not run out of buns.” Eventually, in January 2013, Mr Cameron made his “Bloomberg Speech”, which promised to renegotiate and put the deal to a popular vote.

Mr Cameron’s capacity for buying time was remarkable. The long grass, where he was inclined to deposit difficult issues, was a crowded place during his premiership, as he pushed the Government’s obesity strategy, a decision on London’s airport capacity, extraordinary rendition, the Human Rights Act and press regulation further into the future. Similarly, as he confronted the 2015 election, the European issue had been defused for the time being. He would cross that bridge after the election, which he had little expectation of winning. And yet he did win it. By this time, Boris Johnson’s presence was becoming positively menacing. He and Mr Cameron had never been close, and Mr Cameron, by now committed to leaving office before 2020, wanted his loyal Chancellor and confidant George Osborne to succeed him. Mr Osborne thought the poll should be held as early as possible, in THE Chancellor, George Osborne, is being urged to resign by Eurosceptic ministers after he was accused of adopting a “scorched earth” policy during the referendum campaign.

Mr Osborne, who is expected to appear in the Commons tomorrow for the passing of the Finance Bill, has indicated he will stay on after the Leave vote and do “all I can to make it work”.

The prospect of him remaining at the Treasury until the election of a new Conservative leader has infuriated Eurosceptic ministers, who accused him of “scaremongering”.

The Chancellor faced an open revolt from more than 60 Conservative MPs when he threatened an austere emergency Budget after a Brexit vote, including £30 million in tax rises or cuts.

But 65 Tories signed a letter refusing to back Mr Osborne’s Brexit Budget in the Commons, effectively blocking it because of the party’s slim majority.

Iain Duncan Smith, Liam Fox and Owen Paterson, all former Cabinet members, signed the letter warning Mr Osborne’s position would be “untenable” if he tried to carry out the plan.

One minister said: “George is finished. I would be astonished if he stood as a leadership candidate. He is a very astute political operator and I’m certain he can see that it’s over.”

Another said: “It’s going to be difficult for him to be respected and to stay on after what he did.”

Mr Cameron has vowed not to interfere in the party’s leadership race and views his responsibility as being to “steady the ship” and ensure an orderly transition. He had previously tipped Mr Osborne, his close friend, as his successor, but told the BBC last March that Boris Johnson and Theresa May also have what it takes to be Prime Minister.

It followed a surprise announcement that he would not seek to serve a third term in Downing Street if elected.

The decision to announce, ahead of last year’s election, that he planned to serve only two five-year terms as PM prompted speculation, which Mr Cameron has repeatedly denied, that he would only serve around half of his second term and look for a replacement next year.

He told the BBC: “There definitely comes a time where a fresh pair of eyes and fresh leadership would be good, and the Conservative Party has got some great people coming up – the Theresa Mays, and the George Osbornes, and the Boris Johnsons.”

He added: “I’ve said I’ll stand for a full second term, but I think after that it will be time for new leadership ... terms are like Shredded Wheat – two are wonderful but three might just be too many.”

Any plans for a later hand-over have now been blown away by his referendum defeat and, according to friends, Mr Cameron is now considering life as a back-bencher for the remainder of the Parliament. “He loves spending time in his constituency,” one friend said. “He certainly has no intention of returning to front-line politics.”

Last year, Mr Cameron said he would miss being Prime Minister once he