Cabinet return for David Laws

David Laws is to make a spectacular comeback to the Cabinet later this year, senior coalition sources confirmed last night.

Nick Clegg had been urged to bring back Mr Laws, one of the Lib Dems' leading thinkers, by giving him a minor role following Chris Huhne's resignation on Friday. But it is understood that the Deputy Prime Minister wants the Yeovil MP, who resigned as Chief Secretary to the Treasury just 17 days into the coalition, to make a direct return to the top table.

"There is only one place for David, and that's in the Cabinet," said one insider.

David Cameron had been contemplating refreshing his team in March, but is now more likely to have a shake-up later this year, with several cabinet figures facing demotion or the sack. Mr Clegg has been privately canvassing opinion on who could do the job of Health Secretary – fuelling speculation that Andrew Lansley will be asked to step down over his less-than-smooth handling of the Health Bill. The Sport Secretary, Jeremy Hunt, is being lined up as a replacement, but the PM is unlikely to move him before the Olympic Games this summer.