The Chancellor has been personally blamed for the party’s misfortunes and poor opinion poll ratings, with senior figures warning that change is needed ahead of the general election.
There are renewed calls for Mr Osborne to give up his role coordinating the party’s campaigning, as fears mount of disastrous results in May’s English local elections.
Some critics are demanding that he should be replaced as Chancellor by William Hague, the Foreign Secretary. Such a move would be a dramatic shift for the Prime Minister, as Mr Osborne is his closest political ally.
One senior Conservative at the heart of the party, speaking on condition of anonymity, told The Telegraph: “George is the problem.”
Concerns centre on what is perceived to be his failure to understand the middle classes, their values, and their economic struggle.