Undermining Reeves' Current Role Carries Significant Risk

In a significant move, Labour Party leader Keir Starmer has reshuffled his team, appointing a fresh line-up of individuals to support him on economic affairs. The new chief economic adviser is Minouche Shafik, a world-leading economist, who has been tasked with supporting the Prime Minister on economic matters.

Minouche Shafik, a renowned figure in the economic sphere, brings a wealth of experience to the role. She is known for her extensive work in academia and policy-making, having previously served as the Deputy Governor of the Bank of England and the Director of the London School of Economics.

The appointment comes at a critical time for the Labour Party, as the markets question the credibility of the government's plans. The reshuffle is seen as a strategic move by Starmer, aiming to inject fresh ideas into the Budget process, which may become more complicated due to the addition of fresh faces and ideas.

Darren Jones, previously the second-in-command to Rachel Reeves, has been appointed as "chief secretary to the Prime Minister", a new ministerial role. Jones will directly oversee work across the UK government to support the delivery of the Prime Minister's priorities.

The reshuffle also sees the promotion of Dan Tomlinson, a former colleague of Torsten Bell at the think tank, to the position of exchequer secretary to the Treasury. Torsten Bell, the former chief executive of the left-wing Resolution Foundation, is reported to be joining the Treasury with fresh ideas for the Budget.

Rachel Reeves, who was initially chosen by Starmer as Shadow Chancellor but was later replaced, has been vocal about her economic credentials. She has emphasized her career background at the Bank of England and in business before entering politics. Reeves claimed responsibility for managing the economy and made it personal, stating that they were elected because people trusted Labour with their money.

However, her plans to reduce welfare spending were undermined by her own party, leading to tears on the frontbench a year later. The "Torsten Takeover" is expected to ignite the left of the Labour Party, as Torsten Bell brings his own set of ideas to the table.

Starmer's decision to take back control of the economy is a big gamble, with the reshuffle aiming to inject fresh ideas and credibility into the Labour Party's economic strategy. The changes are expected to have a significant impact on the party's approach to the Budget and their overall economic policy.