British Prime Minister Keir Starmer has made a notable change to his economic advisory team by appointing Minouche Shafik, a former deputy governor of the Bank of England, as his chief economic adviser. This move aims to strengthen economic guidance ahead of a challenging budget expected later this year.
Shafik’s extensive experience, including senior roles at the Bank of England and the International Monetary Fund, as well as academic positions in the UK and U.S., brings valuable expertise at a critical time.
Starmer’s team has also brought Darren Jones, deputy to Chancellor Rachel Reeves, into a close advisory role at Downing Street. Jones’s Treasury role will be taken over by Labour MP James Murray.
The reshuffle extends to Downing Street’s operational staff, with changes to Starmer’s principal private secretary and director of communications. Labour has faced criticism within its own ranks for struggling to communicate government policies and successes, contributing to a dip in opinion polls.
The upcoming budget poses a difficult task for Reeves, who must balance fiscal discipline with pressures for greater public spending under strict fiscal rules slated to balance spending and tax revenue by 2029. One Labour MP said, “I think the creation of a role for Darren Jones is a good move. He’s clearly got an eye for the details but understands the politics too.”
Shafik, born in Egypt and educated at Oxford, has held high-profile positions including vice chancellor of the London School of Economics and president of Columbia University, though she resigned amid controversy there. She is also a crossbench member of the House of Lords.
In a 2021 book, she advocated policies blending income guarantees with work incentives, pension reforms, and early childhood support to promote fairness.
Starmer’s office said, “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.”