LONDON, ENGLAND – AUGUST 14: British Prime Minister Keir Starmer speaks throughout a VJ Day reception at Downing Road on August 14, 2025 in London, England. The Prime Minister is internet hosting veterans, historians, and college youngsters through the reception to mark the eightieth anniversary of Victory over Japan Day, or VJ Day, which commemorates the announcement of Japan’s acceptance of the phrases of the Potsdam Declaration on August 15, 1945, successfully bringing WWII to an finish. (Photograph by Alberto Pezzali – WPA Pool/Getty Photographs)
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British Prime Minister Keir Starmer has appointed Minouche Shafik, a former deputy governor of the Financial institution of England, as his chief financial adviser, a part of efforts to bolster his crew earlier than what is ready to be a tough finish to the 12 months.
Shafik’s appointment and a transfer to carry Darren Jones, finance minister Rachel Reeves’ deputy, to his Downing Road workplace point out that Starmer believes he wants higher financial recommendation earlier than a funds later this 12 months that’s anticipated to incorporate additional tax rises.
Jones might be changed by Labour lawmaker James Murray, who held a extra junior position within the finance ministry, Starmer’s workplace mentioned in an announcement.
In a wider shake-up of Downing Road operations, Starmer additionally changed his principal non-public secretary, who runs his crew’s workplace, and appointed a brand new director of communications.
After greater than a 12 months in energy, Starmer’s crew has been criticised by some in his get together for failing to promote his authorities’s typically tough coverage selections and champion its successes, as Labour’s ballot scores have slumped.
The brand new appointments could strengthen the financial recommendation Starmer receives earlier than a difficult funds for Reeves, who has little room to manoeuvre after sticking to her so-called fiscal guidelines with the goal of balancing day-to-day spending with tax income by 2029.
“I feel the creation of a job for Darren Jones is an effective transfer,” mentioned one Labour lawmaker. “He is clearly bought a watch for the small print however understands the politics too.”
Shafik to carry ‘extra experience’
Shafik was the BoE’s deputy governor for markets and banking between August 2014 and February 2017, earlier than leaving halfway by her time period to develop into vice chancellor of the London College of Economics.
In 2023, she turned president of New York’s Columbia College, however give up after little greater than a 12 months when the college’s dealing with of months of scholar protests over Israel’s battle in Gaza drew criticism from either side.
Earlier in her profession, Shafik was the highest civil servant in Britain’s overseas assist ministry and subsequently deputy managing director on the Worldwide Financial Fund, the place she oversaw the IMF’s work in Europe and the Center East through the euro zone debt disaster and the Arab Spring.
“This position and the extra experience will help the federal government to go additional and quicker in driving financial progress and elevating residing requirements for all,” Starmer’s workplace mentioned.
Shafik, who can also be a non-partisan member of parliament’s higher chamber, the Home of Lords, was born in Egypt and grew up within the southern United States, earlier than finishing a doctorate in economics on the College of Oxford.
In a 2021 e book, she referred to as for insurance policies that mixed earnings flooring with incentives to work, pensions linked to life expectancy, and interventions in early childhood to equalise alternative.
