David Mundell will lead an emboldened team of Scottish Conservative MPs more closely allied to Ruth Davidson than Theresa May, The Courier can reveal.
The news came as Michael Gove made a shock return to government as part of a post-election Cabinet reshuffle.
Downing Street said the Scot had been appointed Environment Secretary replacing Andrea Leadsom who becomes the new Leader of the Commons.
The former justice secretary was sacked by Mrs May in one of her first acts as Prime Minister after he effectively scuppered the Tory leadership hopes of Boris Johnson by withdrawing his support and announcing his own candidacy.
The appointment of Mr Gove – who she clashed bitterly with over tackling extremism when they were in government together under David Cameron – will be seen as further evidence of Mrs May’s need to shore up her position after seeing her Commons majority wiped out.
Earlier, the Prime Minister announced that she was promoting close ally Damian Green to become First Minister of State – a title associated with the position of deputy prime minister.
In a relatively limited reshuffle of her top team David Gauke – who was the Treasury chief secretary and has long been regarded as one of the government’s strongest performers – was promoted to take over at the Department for Work and Pensions.
David Lidington, the leader of the Commons, also received a step up as the new Lord Chancellor and Justice Secretary. He replaces Liz Truss who becomes Treasury Chief Secretary “attending Cabinet”, in a move that will be seen as a demotion.
There had been speculation she could be axed altogether following fierce criticism from the judiciary over her failure to speak out in support of judges who were criticised over the Article 50 High Court ruling.
The decision to keep her in government will be seen as another indication of Mrs May’s weakness following the loss of her Commons majority.
Great to meet up with my new @ScotTories MP colleagues and new MSP. A really impressive bunch who will make a big difference at Westminster pic.twitter.com/Kj0d9b3kQd
— David Mundell (@DavidMundellDCT) June 10, 2017
Mr Mundell was formally reappointed as Scottish Secretary and his deputy in Dover House is expected to be either Douglas Ross, the new MP for Moray, or John Lamont, who was elected to represent Berwickshire, Roxburgh and Selkirk at the fourth time of asking.
Another possible role for Mr Lamont is the Scottish MPs’ whip, given he was Ms Davidson’s enforcer in the Scottish Parliament during his time as an MSP.
It is understood that a separate person instructing the 13 Conservative members from north of the border how to vote is under consideration although no final decision has been made.
Whatever the outcome, senior figures in the party say the Scots will all take the UK Government whip.
With Mrs May’s authority diminished following a disastrous election result, however, Tory politicians are beginning to assert influence over Downing Street.
Defence Secretary Sir Michael Fallon said ministers have warned Mrs May that she must consult more closely with the Cabinet and with Tory backbenchers following her election humiliation.
And Ms Davidson, the party’s Scottish leader, has already flexed her muscles by saying she wants to see a fresh approach to Brexit through cross-party consensus and calling for assurances about attitudes to gay rights after it emerged the Conservatives were seeking an alliance with the DUP to stay in government.
She and Mr Mundell are extremely close politically and have formed a strong bond in recent years.
A senior Tory source said: “We have 13 MPs to do that and, for example, we are very aware of the needs of the fishing and farming community in the North East, particularly with Brexit, who voted for us.
“As a block, we want to make sure these issues are raised. We intend to use our influence as best we can.
“We are not going to go into this with an antagonistic attitude but by being in the tent and having a voice we can get things done.”
Manwhile, a YouGov poll for the Sunday Times suggested 48% thought Mrs May should stand down, with 38% saying she should stay, while Survation for the Mail on Sunday had 49% of people saying she should quit, with 38% saying she should remain in the post.
Graham Brady, the chairman of the Tory backbench 1922 Committee and one of the party’s key power-brokers, insisted that there was no appetite among MPs for an immediate leadership challenge which could see them plunged into another general election.
However he acknowledged that the party would have to abandon much of the programme set out in the general election manifesto as it would no longer be able to get it through Parliament.
Former cabinet minister Nicky Morgan, who was sacked by Mrs May, predicted that there could be a leadership challenge over the summer and ex-business minister Anna Soubry said Mrs May’s position was “untenable” in the long term but cautioned against a rush to replace her.