Liz Truss has been heavily criticised by ministers as the unrest in the Conservative party reaches boiling point.
As the Cabinet becomes engulfed in a civil war following the humiliating U-turn over plans to scrap the top earners’ 45p income tax rate, one minister has declared that the party is “in a horrible mess”.
“She might have started with a wish to be ideological and true to her freemarket, buccaneering beliefs but reality bites,” another Cabinet minister told The Times.
“She needs to acknowledge the world in which we live rather than the world they would like. We are a mainstream centre-right party, not a far-right sect.”
Despite Ms Truss and the Chancellor sticking to their pledge of boosting growth in the UK, some believe te Government may soon collapse.
Although Ms Truss will attempt to win favour with rebel MPs as they return this week, one former minister said: “There will be a higher level of organisation.
“The most likely outcome is a seepage of power, which leads to a collapse in four to eight months.”
Even an MP who supports Ms Truss called her reign the “worst self-inflicted political disaster in my lifetime”.
They said: "She’s only lost two groups in the last few weeks. The problem is they are the parliamentary party and the country. It is the worst self-inflicted political disaster in my lifetime.
“I was previously confident about winning my seat. Now it’s no better than evens.
“Some colleagues who now think they’re odds-on to lose are wondering if it’s worth the fight or just starting to look for other jobs now.”
It comes after Ms Truss sacked a minister over allegations of “serious misconduct”.
Conor Burns had the whip suspended after complaints about his behaviour at a gathering in Birmingham this week.
A No10 spokesperson said: "Following a complaint of serious misconduct, the Prime Minister has asked Conor Burns MP to leave the Government with immediate effect."
Separately, a poll has shown the Conservatives have fallen 37 points behind Labour in London, according to a new analysis which suggests all their MPs in the city would be at risk of General Election defeat.
The MRP polling by Survation for campaign group 38 Degrees put Labour on 59 per cent in the capital, the Tories 22 per cent and Lib-Dems 13 per cent.
The Survation analysis found the Tories would lose all their 21 seats in London if the results were replicated at the next General Election expected in 2024. Labour would gain 23 and have all the seats in the capital apart from Twickenham which would remain Lib-Dem.