Mr Philp is understood to have been the pioneer behind the government’s mini-budget plan to scrap the 45p tax rate for highest earners, which was reversed in a spectacular U-turn a few weeks ago.
He has been moved to a different department, the Cabinet Office, as paymaster general.
Mr Philp is the second member of Liz Truss‘s Treasury team to be removed from the department today, with her chancellor Kwasi Kwarteng having been sacked earlier this afternoon.
Ed Argar has been promoted into Mr Philp’s former role as chief secretary to the Treasury.