Keir Starmer Aims to Reclaim Policy Control from Treasury Amid Downing Street Restructuring This title captures the essence of the article by emphasizing Keir Starmer’s intention to regain policy control from the Treasury within a broader context of chan

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September 1, 2025

Starmer Fortifies No.10 with Economic Advisors Amid Looming Fiscal Challenges

London, United Kingdom – In a strategic move to consolidate control over economic policy, Keir Starmer has initiated a significant restructuring of his Downing Street team. The reshuffle, unveiled this week, brings seasoned economic figures into key advisory roles as the government prepares for a potentially turbulent autumn marked by budgetary pressures and shifting political landscapes.

New Roles & Key Appointments

The Prime Minister has created two new positions to enhance his operation’s economic capabilities. Darren Jones has been appointed as chief secretary to the prime minister, tasked with overseeing day-to-day policy delivery. Simultaneously, Minouche Shafik has been named the prime minister’s chief economic advisor, bringing her extensive experiance from the Bank of England to bear on critical economic decisions.

These appointments signal Starmer’s intention to proactively shape economic narratives and mitigate the risks of repeating past missteps,such as those related to winter fuel payments and welfare allocations. The moves also come as the Labor party seeks to regain momentum after a summer dominated by issues such as migration and the rise of Reform UK in opinion polls.

Addressing Concerns & Strengthening control

Downing Street sources indicate that the reshuffle is a direct response to a perceived lack of economic influence within the Prime Minister’s office. Insiders suggest that Starmer aims to establish a more direct line of sight over Whitehall, including the Treasury, evolving No. 10 into a “command and control” operation. This involves ensuring greater oversight of key policy decisions and preventing surprises, like the recent issues surrounding winter fuel allowances.

Despite the breadth of the changes, which also encompass the communications team and policy unit, Starmer has dismissed suggestions that the reshuffle is a reaction to a crisis. he characterized it as a natural progression to a second phase of government, highlighting the creation of entirely new positions within his administration.

Communications Overhaul & Potential Controversies

The reorganization extends beyond economic roles, with a significant overhaul of the communications operation. Tim Allan, an advisor to former Prime Minister Tony Blair, has been appointed as executive director of government communications. Though, his past work for Russian President Vladimir Putin has already attracted scrutiny from opposition figures, with some raising concerns about potential conflicts of interest.

David Dinsmore, a former editor of The Sun, will focus on improving civil service communications, while changes have also been made to the No. 10 policy unit. Liz Lloyd, a former deputy chief of staff to Blair, is departing, and Stuart Ingham, a longstanding aide to Starmer, is taking on a more politically focused role.

Key Personnel Changes: A Snapshot

Position	Previous Holder	New Holder
Chief Secretary to the Prime Minister	N/A	Darren jones
Prime Minister’s Chief Economic Advisor	N/A	Minouche shafik
Executive Director of Government Communications	N/A	Tim Allan

Did You Know? The role of chief Secretary to the Prime Minister is a newly created position designed to provide dedicated support for economic policy implementation.

Pro Tip: Understanding the structure of a government’s inner circle can provide valuable insights into its priorities and decision-making processes.

Even though these changes are significant, senior sources indicate there won’t be an immediate wider reshuffle of junior ministers, and cabinet positions will remain unchanged for now.

Do you believe these changes will give the Prime Minister greater control over economic policy decisions? What challenges do you foresee for the government in the coming months?

the Evolving Role of Prime Ministerial Advisors

The increasing reliance on specialized advisors within Downing Street reflects a broader trend in modern governance. Prime ministers are increasingly turning to experts outside of traditional civil service channels to provide tailored advice and implement specific policy agendas. This trend highlights the growing complexity of government and the need for specialized knowlege to navigate intricate policy challenges. According to a report by the Institute for Government in May 2024, the number of special advisors in Whitehall has risen by 35% in the last decade.

Frequently asked Questions

• What is the primary goal of Keir Starmer’s reshuffle? The main aim is to strengthen the Prime Minister’s control over economic policy and improve decision-making.
• who is Minouche Shafik and why is her appointment significant? Minouche Shafik is a former Bank of England chief economist who will serve as the Prime Minister’s chief economic advisor, bringing valuable expertise to the role.
• What concerns have been raised about Tim Allan’s appointment? Concerns stem from his previous work for Vladimir Putin, raising questions about potential conflicts of interest.
• Will these changes impact Rachel Reeves’s position as Shadow Chancellor? Sources indicate that Reeves was involved in the discussions and the changes are not intended to undermine her role, but rather to complement it.
• What challenges does the government face in the coming autumn? The government anticipates a difficult autumn with potential tax rises and ongoing economic pressures.

Share your thoughts on this developing story in the comments below!

What are the potential consequences of diminishing the Treasury’s influence on UK policy?

Keir Starmer Aims to Reclaim Policy Control from Treasury Amid Downing Street Restructuring

The Shifting Power Dynamics in Westminster

Recent reports indicate a critically important power shift brewing within the Labor Party, with Keir Starmer actively seeking to diminish the influence of the Treasury over key policy areas. This move coincides with a broader restructuring effort within Downing Street, signaling a potential overhaul of how policy is formulated and implemented should Labour win the next general election. The core issue revolves around perceived overreach by the Treasury, traditionally a powerful department, into areas traditionally handled by other shadow cabinet portfolios. This isn’t simply about internal party politics; it’s about fundamentally reshaping the balance of power within a potential future government.

Why is Starmer Challenging the Treasury?

Several factors are driving Starmer’s push for greater policy control.

Historical Precedent: Critics argue that the Treasury has, in the past, exerted undue influence, effectively dictating policy across multiple departments, sometimes stifling innovation and responsiveness to specific needs.

Policy divergence: Shadow Cabinet members have reportedly expressed frustration with the Treasury’s tendency to prioritize fiscal conservatism, potentially hindering Labour’s ambitions for more interventionist policies in areas like green energy, social welfare, and industrial strategy.

Election Readiness: Starmer’s team believes a more streamlined and collaborative policy-making process will be crucial for swift and effective action if Labour forms the next government. A clear delineation of responsibilities is seen as vital.

Public Spending Commitments: Labour’s planned increases in public spending require a more nuanced approach than simply cutting budgets elsewhere, necessitating greater control over the policy levers that drive spending.

The Downing Street Restructuring: A Key Component

The restructuring of Downing Street staff is intrinsically linked to Starmer’s efforts. The appointment of Sue Gray as Labour’s Chief of Staff was a pivotal moment. Gray, known for her meticulous approach and focus on accountability, is expected to play a key role in enforcing a more disciplined and coordinated policy advancement process.

Enhanced Policy Units: Reports suggest the creation of strengthened policy units directly reporting to Starmer, bypassing the conventional route through the Treasury.

Direct Access to Expertise: The aim is to give Shadow Cabinet members direct access to specialist advisors and research, reducing reliance on Treasury-led analysis.

Improved Coordination: The restructuring aims to foster better communication and collaboration between different policy areas, preventing the kind of siloed thinking that has plagued previous administrations.

Impact on Key Policy Areas

The implications of this shift are far-reaching, potentially impacting several key policy areas:

Green Prosperity Plan: Labour’s aspiring plans for a green transition, including significant investment in renewable energy, could be accelerated with greater control over funding and implementation.

NHS Reform: starmer’s commitment to reforming the National Health Service could see more targeted investment and policy changes, less constrained by Treasury austerity measures.

Economic Strategy: A more independent approach to economic policy could allow Labour to pursue choice models of growth, focusing on regional development and tackling inequality.

Social Welfare: Increased investment in social welfare programs, a core Labour pledge, will require a more flexible approach to budgetary constraints.

Case Study: The 2010-2015 Coalition Government

the challenges Starmer faces aren’t entirely new. The 2010-2015 coalition government provides a relevant case study. The Liberal Democrats frequently clashed with the Treasury over spending priorities, especially regarding education and environmental policies. This tension often resulted in compromises that satisfied neither party, highlighting the dangers of allowing a single department to dominate policy-making. The experience underscores the importance of a more balanced and collaborative approach.

Potential Challenges and Criticisms

While Starmer’s move is widely seen as a power play, it’s not without potential challenges:

Treasury Pushback: The Treasury is likely to resist any attempt to diminish its authority, potentially leading to internal conflict and bureaucratic obstruction.

Economic Credibility: Critics may argue that weakening the Treasury’s control could undermine economic credibility and spook financial markets.

Coordination Difficulties: A more decentralized policy-making process could led to coordination difficulties and conflicting priorities.

Accountability Concerns: A less centralized system might blur lines of accountability, making it harder to assess the effectiveness of different policies.

Labour’s Economic Vision: Key Search Terms

To understand the context of this power shift,consider these related search terms:

Labour economic policy

Keir Starmer economic plan

Treasury influence UK government

Downing Street restructuring

Green prosperity plan funding

UK public spending priorities

shadow Cabinet policy disagreements

Sue Gray Labour Chief of Staff

Fiscal conservatism vs interventionism

Economic inequality UK

Benefits of a More Balanced Approach

A successful rebalancing of power could yield significant benefits:

More Responsive Policies: