The policy clashes reflect the challenge Mr Gove, Mr Sunak and Mr Johnson are facing as they attempt to shape and improve the levelling up plan.

The phrase was adopted in the December 2019 election to sum up Mr Johnson’s domestic reform agenda. It focuses on reducing geographical inequality, but critics say it is ill-defined.

The Government has long looked at whether more tax can be secured from internet giants such as Amazon and Google, to help struggling high street firms.

It is not the first policy clash between Mr Gove, put in charge of the levelling up plans in September, and Mr Sunak, who is concerned by the scale of government borrowing.

For much of the discussions, the Treasury has made clear no extra spending beyond what was announced in the Budget is available for the levelling up relaunch.

The Telegraph reported earlier this year that Mr Gove’s hopes of announcing a new manufacturing White Paper were blocked by the Treasury, as it would raise expectations of extra spending to come.

There has, however, been speculation the Treasury’s firm position could be softening.

Mr Johnson, Mr Gove and Mr Sunak have been holding regular meetings together to discuss possible new policies to announce at the levelling up relaunch.

The speech, which will be accompanied by a White Paper, had been expected before the end of 2021, then the end of January. It has now slipped to February.

The agenda is a central plank of the Prime Minister’s attempt to retain the former Labour heartland seats in the Midlands and North England, dubbed the “Red Wall”, at the next election.

Mr Johnson has already lost one Tory “Red Wall” MP – Christian Wakeford, of Bury South, who defected to Labour this week.