Paul Waugh tweets that Angela Eagle is to be moved to the non-job that is Shadow Energy and Climate Change Secretary with former Lloyds banker Rachel Reeves taking over as Shadow Chief Secretary to the Treasury. Presumably this would mean Meg Hillier is for the chop. As predicted here last week.

UPDATE: Ivan Lewis tipped to stay. Absurd.

UPDATE II: The LibDem Head of Press reacts to the news:

http://twitter.com/#!/phil_reilly/status/121951543250526208