Prime minister Sir Keir Starmer has moved to strengthen Labour’s grip on economic policy by creating a new “Budget board” linking senior ministers, advisers and business voices. Meeting weekly, the board will coordinate policies ahead of the Budget on 26 November to boost growth while maintaining the confidence of businesses and the City.
The initiative follows Chancellor Rachel Reeves’s first Budget last October, which raised employer national insurance by £25bn and increased the minimum wage, souring relations with business. Reeves is now under pressure as she faces a fiscal gap of at least £20bn and the likelihood of higher taxes.
Starmer’s economic adviser and former Bank of England deputy governor, Baroness Minouche Shafik, will co-chair the new board with Treasury minister Torsten Bell. Other members include Darren Jones, who has taken the role of chief secretary to the prime minister; Starmer’s adviser Varun Chandra; and communications chiefs Tim Allan and Ben Nunn. Chiefs of staff Morgan McSweeney and Katie Martin are also involved to improve political and media handling.
Officials said the board was designed to ensure closer cooperation between Number 10 and the Treasury while opening stronger lines of communication with business leaders. Starmer has also instructed ministers to prioritise growth by accelerating planning and infrastructure projects and reducing the number of regulators and civil servants.
Downing Street said the government focuses on investment and reform to deliver higher output and an economy that works for working people.
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