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DAVID Cameron is ready to lose Andrew Lansley from the Cabinet as the PM plans to axe key parts of the Health Secretary’s NHS reforms.

The PM is on the brink of caving in to Lib Dem demands to ­drastically change Mr Lansley’s bid to hand GPs most of the £92billion budget and use private firms more.

A senior ministerial source said the concessions will be “much ­bigger than expected” and leave Mr Lansley “isolated” as the PM axes reforms he spent years drawing up. Allies of the PM fear Mr Lansley may quit over the humiliation after ruling out a move sideways, insisting: “I don’t want any other Cabinet job.”

Mr Cameron will give in to one of Lib Dem leader and ­Deputy PM Nick Clegg’s main ­demands by watering down moves to get more firms battling to ­provide ­services. The PM will also seek to get more nurses and hospital doctors involved in the new groups of GPs that will decide spending. Mr Cameron is thinking of sending the NHS Bill to a committee of MPs who might want even more changes.

Labour MP Tom Watson urged Mr Lansley to go. Mr Watson said: “He has been ­humiliated by his Prime­ ­Minister. For his own dignity and the credibility of the NHS, he should quit.” Barrie Brown of health union Unite said: “A watered-down version of the Bill would be a huge vote of no-confidence – he may be left no option but to step down.”

A minister said: “The mood at No 10 is that serious concessions will have to be made. God knows where it leaves Lansley. The PM won’t sack him, but Lansley might decide he’s had enough.”

Tory right-wingers are ­threatening a mutiny if the PM resists efforts to bring more firms into the NHS.

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