LONDON, Sept 1 (Reuters) – British Prime Minister Keir Starmer has named Minouche Shafik, a former deputy governor of the Bank of England, as his principal economic adviser, signaling a strategic reinforcement of his inner circle amid mounting economic challenges ahead.\n\nShafik’s appointment, alongside the transfer of Darren Jones—deputy to Finance Minister Rachel Reeves—into Starmer’s Downing Street office, underscores the administration’s intent to strengthen its economic policymaking capacity before a pivotal budget later this year, expected to include tax increases.\n\nJones will be succeeded by Labour MP James Murray, who previously held a lower-ranking position in the finance ministry, according to a statement from the prime minister’s office.\n\nAs part of a broader restructuring of the executive office, Starmer has also appointed a new director of communications and replaced his principal private secretary, who oversees daily operations of the leadership team.\n\nDespite more than a year in office, Starmer’s administration has faced internal criticism for struggling to effectively communicate its policy rationale and highlight achievements, particularly as Labour’s public approval ratings have declined.\n\nThese personnel changes are expected to enhance the quality of economic counsel available to Starmer, especially as Reeves faces tight fiscal constraints under her commitment to fiscal rules aimed at balancing operational spending with revenue by 2029.\n\n”Bringing in Darren Jones is a smart decision,” said a Labour parliamentarian. “He pays attention to detail while also grasping the political landscape.”\n\nShafik served as the Bank of England’s deputy governor for markets and banking from August 2014 to February 2017, stepping down before completing her term to lead the London School of Economics.\n\nIn 2023, she assumed the presidency of Columbia University in New York but resigned after just over a year amid controversy over the institution’s response to student demonstrations related to the conflict in Gaza.\n\nEarlier in her career, she held senior roles in the UK’s foreign aid department and served as deputy managing director at the International Monetary Fund, where she managed the organization’s initiatives across Europe and the Middle East during periods of financial and political upheaval.\n\n”This appointment, along with the added expertise it brings, will help the government accelerate efforts to boost economic growth and improve living standards for everyone,” Starmer’s office stated.\n\nBorn in Egypt and raised in the southern United States, Shafik earned a doctorate in economics from Oxford University and currently serves as an independent member of the House of Lords.\n\nIn a 2021 publication, she advocated for policies combining income guarantees with work incentives, pension reforms tied to longevity, and early-life interventions to promote equal opportunity.\n\n— news from Reuters\n\n— News Original —\nUK’s Starmer reshapes team, names ex-BoE official as top economic adviser\nLONDON, Sept 1 (Reuters) – British Prime Minister Keir Starmer has appointed Minouche Shafik, a former deputy governor of the Bank of England, as his chief economic adviser, part of efforts to bolster his team before what is set to be a difficult end to the year. \n\nShafik ‘s appointment and a move to bring Darren Jones, finance minister Rachel Reeves ‘ deputy, to his Downing Street office indicate that Starmer believes he needs better economic advice before a budget later this year that is expected to include further tax rises. \n\nSign up here. \n\nJones will be replaced by Labour lawmaker James Murray, who held a more junior role in the finance ministry, Starmer ‘s office said in a statement. \n\nIn a wider shake-up of Downing Street operations, Starmer also replaced his principal private secretary, who runs his team ‘s office, and appointed a new director of communications. \n\nAfter more than a year in power, Starmer ‘s team has been criticised by some in his party for failing to sell his government ‘s sometimes difficult policy decisions and champion its successes, as Labour ‘s poll ratings have slumped. \n\nThe new appointments may strengthen the economic advice Starmer receives before a tricky budget for Reeves, who has little room to manoeuvre after sticking to her so-called fiscal rules with the aim of balancing day-to-day spending with tax revenue by 2029. \n\n”I think the creation of a role for Darren Jones is a good move,” said one Labour lawmaker. \n\n”He’s clearly got an eye for the details but understands the politics too.” \n\nSHAFIK TO BRING ‘ADDITIONAL EXPERTISE ‘ \n\nShafik was the BoE ‘s deputy governor for markets and banking between August 2014 and February 2017, before leaving midway through her term to become vice chancellor of the London School of Economics. \n\nIn 2023, she became president of New York ‘s Columbia University, but quit after little more than a year when the university ‘s handling of months of student protests over Israel ‘s war in Gaza drew criticism from both sides. \n\nEarlier in her career, Shafik was the top civil servant in Britain ‘s foreign aid ministry and subsequently deputy managing director at the International Monetary Fund, where she oversaw the IMF ‘s work in Europe and the Middle East during the euro zone debt crisis and the Arab Spring. \n\n”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. \n\nShafik, who is also a non-partisan member of parliament ‘s upper chamber, the House of Lords, was born in Egypt and grew up in the southern United States, before completing a doctorate in economics at the University of Oxford. \n\nIn a 2021 book, she called for policies that combined income floors with incentives to work, pensions linked to life expectancy, and interventions in early childhood to equalise opportunity. \n\nReporting by David Milliken and Sachin Ravikumar; additional reporting by Elizabeth Piper, editing by Sarah Young, Kate Holton and Kevin Liffey
