No 10 insists reshuffle won't dent chancellor's authority

Rachel Reeves's authority has not been dealt a blow by Sir Keir Starmer's shakeup of his Downing Street team, No 10 has insisted as it sought to calm market jitters.

- MILLIE COOKE

The government's “ironclad commitment” to its fiscal rules remains, the prime minister's official spokesperson emphasised against a backdrop of soaring long-term government borrowing costs.

This week's reshuffle saw the chancellor's deputy, Darren Jones, move into a new role as chief secretary to the prime minister - a move many saw as an attempt to sideline the beleaguered chancellor, who has faced criticism for her handling of the economy.

Sir Keir also brought in Minouche Shafik, a crossbench peer and former Bank of England deputy governor, as his chief economic adviser, and former senior Treasury official Dan York-Smith as his principal private secretary.

The reshuffle has been seen as a sign the prime minister is seeking to bolster No 10's economic firepower before a tricky Budget this autumn, with speculation rife over tax rises.

Sir Keir and Ms Reeves spoke “at length over the summer about how these changes would bolster their joint approach to the growth agenda”, the prime minister’s spokesperson told reporters.