Keir Starmer Sidelines Rachel Reeves as No 10 Tightens Grip on Economic Policy
Rachel Reeves, once touted as the economic backbone of Labour’s administration, has been left humiliated after Keir Starmer effectively stripped her of her central role in shaping government policy.
“What is the Chancellor if not the Prime Minister’s economic adviser? We now know that she no longer performs that function, after the PM’s brutal move to bring economic policy into his office, rather than hers.”
‘It’s about freezing Rachel Reeves out of the circle.’
Fraser Myers believes Rachel Reeves’ position is ‘less secure than it was before’ following Keir Starmer’s mini reshuffle.
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It’s a dramatic shift. Reeves, the Chancellor, now finds herself reduced to a bystander in the very arena she was meant to lead. For Starmer, the move signals both desperation and calculation.
After little more than a year in office, his government is already wobbling, battered by sliding poll numbers and a growing sense of drift.
Labour entered power with bold promises: stabilise the economy and spark growth. Neither has materialised. Inflation continues to bite, while the Treasury’s “black hole”, first exposed by Reeves on day one, has ballooned further.
Growth? Minimal, and largely propped up by short-term government spending. Hardly the sustainable boom voters were promised. And with the autumn Budget looming, insiders whisper that tax rises could be twice as punishing as last year.
Over the summer, the Prime Minister reportedly reflected on his team and their delivery capacity. His conclusion was brutal – Reeves could no longer be trusted with economic strategy.
Yesterday came the announcement: sweeping changes at Number Ten, packaged as the “second phase” of Starmer’s government. A glossy video release sought to frame it as a renewal.
But behind the spin lies a stark admission, the first year has been messy, and the public isn’t buying the story. The restructuring follows his recent mini-reshuffle at Downing Street, a move that hinted Starmer was already tightening control over the levers of power.
The biggest shock? The arrival of Minouche Shafik as Starmer’s new economic adviser. A seasoned operator, yes, but hardly a reassuring appointment for voters worried about higher taxes.
Shafik made waves last year when she declared: “Those with comfortable pension pots must be expected to pay more to the common good.”
Her influence, combined with Reeves’ diminished role, paints a picture of a government tightening its circle while leaving its Chancellor bruised and exposed.
Polls suggest patience with Labour is wearing thin. Whatever “phase” Starmer claims to be entering, the electorate appears to have checked out. Faith in his leadership is ebbing, and a painful Budget looms large on the horizon.
The final irony? It will be delivered by Reeves, a Chancellor who, despite her title, has been ruthlessly sidelined by the man she serves.
