He will pitch himself to voters as the "change" candidate, willing to take tough decisions such as ditching the next phase of the costly HS2 rail line.
The Prime Minister will set out his vision for the country in his keynote speech to the Conservative Party conference tomorrow. A source close to the PM said: "There is a path to victory. It's difficult but it can be done.
"It's about who can be the change candidate and that's what Rishi is going to show.
"He will be setting out a bold vision for the country.
"Tough decisions need to be taken but he will do what is right for the country.
"It doesn't matter to him if some people criticise - he will do what he believes is the right thing.
"He will make decisions based upon the facts and his own conviction of what's best for Britain."
Mr Sunak is understood to believe that he can pitch himself as the "change" candidate at the next election despite the Tory Party's 13-year rule.
Allies say the fact that he is less than a year into the job and has been in the Cabinet for only three years means he is not weighed down by the legacy of previous Governments and can look at issues from a fresh perspective.
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