Sir Keir Starmer has initiated a major Downing Street shake-up on 1 September 2025 to rebuild control of his government and sharpen its performance ahead of what is shaping up to be a politically turbulent autumn.

This could affect our investment expectations, we will monitor carefully!

Here’s what’s going on, and why:

What’s Happening in the Shake-Up?

Darren Jones is moving from his role as Chief Secretary to the Treasury to become Chief Secretary to the Prime Minister, based in No. 10. In this newly created position, he’ll oversee the day-to-day implementation of the PM’s priorities—a sign that Starmer is centralising authority to improve delivery.

James Murray steps into the Treasury as Chief Secretary, replacing Jones, while Dan Tomlinson is promoted to Exchequer Secretary to the Treasury.

Baroness Minouche Shafik, formerly the Deputy Governor of the Bank of England, is appointed the PM’s Chief Economic Adviser—a move clearly aimed at enhancing economic credibility.

In strategy and communications:

Tim Allan, a seasoned strategist from Tony Blair’s team, is named Executive Director of Communications.

James Lyons, Strategic Communications Director, resigns after just a year—marking the fourth senior communications exit in 12 months.

Daniel York-Smith becomes the new Principal Private Secretary to the PM, replacing Nin Pandit, who has departed after just 10 months.

Vidhya Alakeson, the Deputy Chief of Staff, now also oversees overall policy and delivery at No. 10 amid this structural reshuffle.

Additionally, Tony Blair comes in to advise on the Middle East ?? 

Why the Shake-Up?

Regaining Control & Boosting Delivery

With public dissatisfaction mounting, particularly over economic and immigration issues—as highlighted by falling poll numbers—Starmer appears intent on pushing his agenda more assertively.

Creating a distinct internal delivery structure—involving roles like Chief Secretary to the PM and Chief Economic Adviser—signals a pivot toward a more command-and-control model to enhance effectiveness.

Economic Credibility Under Scrutiny

The government is preparing for a tough Autumn Budget amid a looming fiscal gap of roughly £40 billion and strong voter resistance to tax hikes. Launching a new chief economic adviser underlines a strategy to shore up economic messaging and competence.

Mounting Internal Dysfunction and Staff Turnover

Persistent turnover among senior Downing Street figures—like communications chiefs and private secretaries—has raised concerns about Whitehall efficiency and coherence. Starmer’s team acknowledges ongoing dysfunction.

Restructuring may also reflect attempts to resolve internal disarray and clarify responsibilities across No. 10.

Poll Pressure and Opposition Challenge

Labour’s polling has dropped significantly—down to around 20%—with Reform UK, under Nigel Farage, leading at roughly 28%.

This urgency, combined with public discontent on economics and immigration, has forced Starmer to recalibrate his team and messaging ahead of upcoming political battles.

Bottom Line

Sir Keir Starmer’s shake-up of his Downing Street team is a high-stakes effort to:

Enhance control and execution of his government’s agenda,

Strengthen economic management ahead of the Autumn Budget,

Address internal inefficiencies and turnover, and

Respond to plummeting poll ratings and rising political competition.

Expect more of this “reset” tenor in both operations and messaging as government returns from recess and gears up for autumn challenges.