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Tuesday 09 September 2025 6:12 am  |  Updated:  Monday 08 September 2025 6:36 pm

Starmer’s new team faces same old problem

By: Christian May

Editor-in-Chief

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Starmer's new cabinet faces huge economic challenges
Starmer's shaking up the Downing Street team

Good news from Downing Street as we’re told that economic growth is back on the agenda.

Keir Starmer’s revamped cabinet meets for the first time today and the prime minister will apparently tell this bright new team to “step up a gear” and focus on the economy.

The briefings that accompanied the wave of new ministerial appointments talked up deregulation and talked down net zero.

The new housing secretary, Steve Reed, says his mantra is “build, baby, build” – which makes a change from his predecessor Angela Rayner’s approach of “buy, baby, buy,” Meanwhile, we’re told the new business secretary, Peter Kyle, has red tape in his sights. Wait until he reads the legislation he’s now in charge of; the Employment Rights Bill will tie employers in knots.

And spare a thought for Pat McFadden, tasked with having another go at welfare reform after his predecessor’s humiliating defeat by fellow Labour MPs.

Some eye-catching appointments to the junior ranks are certainly to be welcomed, albeit cautiously, and I wish this new team well.

But as the days get shorter and the Budget looms closer, no amount of pro-growth press releases will spare the nation from the horrors it will contain.

Labour’s divisions are about to be laid bare

The latest Morning Wire/Freshwater Strategy poll of UK voters shows 75 per cent are expecting taxes to rise, which means 25 per cent are in for a shock. Just under 60 per cent told us they expect to be worse off as a result of the Budget and just under 80 per cent said they were concerned about the impact of tax rises on the wider economy.

Rachel Reeves, who is still the chancellor, will today push her new cabinet colleagues for – you’ve guessed it – fresh growth ideas, but she’s also about to receive a lot of unsolicited advice from Labour MPs jockeying to become her party’s new deputy leader.

An election will be held among Labour members for the role, and it promises to be either entertaining or excruciating, depending on your perspective. Left-wing opponents of spending cuts will do battle with ambitious centrists, and the party’s uncomfortable divisions will be laid bare for all to see.

The best Starmer can hope for is a deputy he can live with, rather than one who proves to be a pain in his side.

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Miliband opponents pour cold water on Chancellor hopes

Ed Miliband outside Downing Street

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