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The former MP for Rochester and Strood Mark Reckless is reported to be set to take on a key role in the party in a shock move following days of Ukip in-fighting.
Mr Reckless is to replace Suzanne Evans, the deputy chairman, as policy chief in a further shake-up that is being seen as an attempt by leader Nigel Farage to assert his authority on the party amid unrest and recriminations following the election.
The former MP lost his seat to Conservative Kelly Tolhurst in the general election, having won it only six months before after his defection to Ukip.
Mr Farage described Mr Reckless as courageous and praised his decision to trigger a by-election last year.
The news comes after Ukip's economic spokesman Patrick O'Flynn issued a humiliating apology for describing Mr Farage as a thin-skinned snarling man and quit his role.
According to the Daily Telegraph, Mr Reckless is to replace Suzanne Evans, the deputy chairman of the UK Independence Party, as policy chief.
Ukip confirmed that Miss Evans, who wrote the party’s election manifesto, has lost her paid policy development brief as Mr Farage imposes his will on the party.
She will remain in the unpaid role of deputy chairman.
On Tuesday night Miss Evans denied she had been involved in any plot to undermine Mr Farage at Ukip. She said: "I strongly refute any allegation I was involved in any kind of plot."