Officials Deny Reports of Rift Over Defense Spending Plans

Sources close to an energy department official denied reports that the official refused calls from the prime minister over proposed cuts to departmental budgets intended to fund higher defense spending.

The denial followed reports that the prime minister had been unable to reach the official in recent weeks. Officials said they were surprised by a defense secretary resignation last week but had been more focused on whether the energy official would step down over the spending dispute.

" The official was also described as one of the first cabinet members to call for a timetable on the prime minister's departure after recent local election results.

The energy official is said to be close to a former health secretary who is viewed as a potential rival for party leadership. That individual could return to Parliament this week if successful in an upcoming by-election in a northern constituency. The prime minister stated on Friday that the rival would be offered a cabinet position if elected, adding there are no plans to step down.

Reports also suggested the energy official might be considered for a senior Treasury role under the rival. A supporter of the official said the person has strong backing among younger party members. The prime minister said he does not feel angry or bitter about internal challenges.