Highlights:
- Minouche Shafik named chief economic adviser to Keir Starmer.
- Darren Jones moves into Downing Street role; James Murray replaces him.
- Wider reshuffle includes changes in Starmer’s private office and communications.
- Appointment comes ahead of a budget expected to include further tax rises.
Prime minister Keir Starmer has named Minouche Shafik, a former deputy governor of the Bank of England, as his chief economic adviser. The appointment comes as he looks to strengthen his team ahead of what is expected to be a difficult end to the year.
Shafik’s arrival, along with the decision to bring Darren Jones, deputy to chancellor Rachel Reeves, into his Downing Street office, signals Starmer’s focus on economic advice before a budget later this year that is likely to include further tax rises.
Jones will be succeeded by Labour lawmaker James Murray, who previously held a junior post in the finance ministry, Starmer’s office said in a statement.
Wider changes in Downing Street
Starmer has also reshuffled his Downing Street operations, replacing his principal private secretary and naming a new director of communications.
After more than a year in power, Starmer’s government has faced criticism from within Labour for struggling to explain difficult policy decisions and highlight its achievements. Labour’s poll ratings have dropped in recent months.
The changes could strengthen the economic advice available to Starmer before Reeves presents a budget with limited scope, as she remains committed to her fiscal rules aimed at balancing day-to-day spending with tax revenues by 2029.
"I think the creation of a role for Darren Jones is a good move," one Labour lawmaker said.
"He’s clearly got an eye for the details but understands the politics too."
Shafik to bring ‘additional expertise’
Shafik served as deputy governor for markets and banking at the Bank of England between August 2014 and February 2017, leaving early to become vice chancellor of the London School of Economics.
In 2023, she was appointed president of Columbia University in New York but resigned after little more than a year following criticism over the university’s handling of student protests related to Israel’s war in Gaza.
Earlier in her career, Shafik was the top civil servant in Britain’s foreign aid ministry and later deputy managing director at the International Monetary Fund. At the IMF, she oversaw work in Europe and the Middle East during the euro zone debt crisis and the Arab Spring.
"This role and the additional expertise will support the government to go further and faster in driving economic growth and raising living standards for all," Starmer’s office said.
Shafik’s background
Shafik, who is also a non-partisan member of the House of Lords, was born in Egypt and grew up in the southern United States before earning a doctorate in economics at the University of Oxford.
In a 2021 book, she argued for policies that included income floors with work incentives, pensions linked to life expectancy, and early childhood interventions to equalise opportunity.
(With inputs from agencies)
