PM tries to regain policy control from Treasury in No 10 shake-up

Keir Starmer has attempted to wrest back control of economic policy from the Treasury by bolstering his No 10 team, bringing in the chancellor's deputy and a former Bank of England chief to senior roles.

- Pippa Crerar, Jessica Elgot

Before what is likely to be a tumultuous autumn for the government, he created two new roles, with Darren Jones put in charge of day-to-day delivery and Minouche Shafik appointed the prime minister's chief economic adviser.

Downing Street sources said the changes showed Starmer recognised his operation needed more economic heft to challenge Treasury thinking and avoid damaging pitfalls such as those over winter fuel payments and welfare cuts.

As MPs returned to Westminster after a difficult summer, during which Reform UK dominated the news agenda and soared ahead in the polls, Starmer wants to get on the front foot on issues including the economy and migration.

His internal No 10 reshuffle, which also covered the communications team and the policy unit, comes alongside a new economic pledge to deliver growth that "people can feel in their pockets", a nod to the millions who are still struggling with the cost of living.

The extent of the shake-up reflects the sense that Starmer's No 10 has increasingly struggled to impose its own narrative, and is mainly being driven by external crises, notably the focus over the summer on migration, and Reform's planned response to it.

Things are unlikely to improve in the short term, with the return of parliament presenting Starmer and his team with a series of tough challenges, including the likely need for tax rises in this autumn's budget.

Starmer rejected the idea the changes were prompted by crisis, arguing it was more a case of a new phase of government. "This should be seen more as moving on to the second phase than a reshuffle, because some of the positions are actually new positions," he told the BBC.