Skip to content
Wednesday 19 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,728.04
+0.07%
DAX
26,128.36
-0.80%
CAC 40
8,509.36
-0.82%
STOXX 50
6,468.17
-0.95%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Tuesday 04 September 2012 8:59 pm  |  Updated:  Wednesday 29 May 2019 7:04 pm

An underwhelming reshuffle which did not go far enough

By: KCS-content

Add as a preferred source on Google

COALITION 2.0: that is our front page headline today, and it sums up what this reshuffle is all about. This was an incremental, almost minor reshuffle, not the revolutionary shift that this government really needed, with most of the most important, cabinet-level jobs still controlled by the same people and economic policy changing not one iota as a result. This was certainly not a reshuffle for growth, which is why it was entirely ignored by the stock market and sterling traders.

On balance, the composition of the government’s senior ranks is slightly improved. There will be positive changes to environment with the appointment of the talented Owen Paterson and to justice, where Chris Grayling’s promotion to replace Kenneth Clarke is an unambiguously good move. But I don’t buy the view that the change at Transport will mean more airports any time soon.

Yet there were also many strange decisions. The prime minister was surprisingly weak. He failed to sack several people properly, including Lady Warsi, who will take up a newly created role and retain cabinet attendance rights, and Clarke, who becomes minister without portfolio, also with cabinet status. This wasn’t exactly leadership.

And why did Cameron try (and fail) to move Iain Duncan Smith? There are issues as to whether some of the technical aspects of his welfare reforms would work – they may require an unfeasibly sophisticated computer system – but it would have been silly to force him out at this stage. It also was a mistake to appoint David Laws, generally a good egg, to education: by dividing power, it will merely make Michael Gove’s already extremely tough job even harder.

Another blow was the departure of Nick Herbert from the government. A talented free-marketeer, he was the man responsible for trying to reform prisons and introduce elected police commissioners, a sure way of making sure that the police begins to follow the public’s priorities.

There are, however, some good news lines buried within this overall story of broad continuity marred by mishaps. Lots of good people have been brought in at the lower end of government, though it is doubtful that they will be empowered to make a real difference. The ultra-sound Michael Fallon is a minister at the Department for Business. A number of good, radical MPs from the 2010 intake have been promoted to ministerial jobs, including the excellent ex Deutsche Bank executive Sajid Javid at the Treasury, the brilliant Liz Truss at education and a few others.

My great worry is that – with the exception of Truss, who has found her berth at the reformist Department for Education, many of the talents of these younger ministers will be wasted. They will report to bosses – such as George Osborne or Vince Cable – who have no intention of adopting the radical free-market reforms this country needs. I hope I’m wrong – and I certainly hope that some of these MPs end up running their party one day. But in the meantime, it is the seniors, not the juniors, who run government departments, and the old order remains firmly entrenched.

It is undoubtedly a coup for the government that Paul Deighton, the ex-Goldman Sachs banker who is currently the CEO of the London 2012 Olympic Organising Committee, is being brought in as a Treasury minister in January. As ever, however, I am sceptical that he will be given the power and authority to make more than a marginal difference. All in all, an underwhelming reshuffle from a government that refuses to change direction.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Letters

Trending Articles

  • As it happened: FTSE 100 drops as oil prices rise after Trump makes Hormuz threat

  • Jobless Banquet: Youth unemployment surge ‘sends Neets to KFC’

  • US bond market jitters spark UK economy recession warning

  • Monzo chair makes early exit after boardroom rift

  • Aldi boss wades into supermarket ‘price-gouging’ row

More from Morning Wire

  • UK fintech Starling to axe 130 roles in AI-powered simplification drive

    Fintech
    Starling Bank integrates Apple Pay 2022, showcasing digital banking innovation and seamless mobile payment solutions
  • ‘Fantastic news’ as Burnham brings Britain’s AI minister into Cabinet

    Tech
    Kanishka Narayan, prominent figure in the news, engaging in a public event or discussion, showcasing leadership and influe...
  • Miliband opponents pour cold water on Chancellor hopes

    Politics
    Ed Miliband outside Downing Street
  • Lucy Rigby back as City minister

    Politics
    Lucy Rigby, a blonde woman in glasses and a red blazer, with a phone in her pocket, walking past a black gate.
  • UK economy grows despite Iran war hit

    Economics
    Detailed view of a breaking news event related to general topics, showcasing key elements of the story in a business context.
  • Burnham risks ‘big mistake’ on AI with tech department shake-up

    Tech
    Andy Burnham discussing capital gains tax increase during a press conference, highlighting potential economic impacts
  • On this day in 1940: Happy birthday Ken Clarke

    Opinion
    GettyImages 3261869 showcasing a significant moment in news, emphasizing key details relevant to the articles context.
  • What should sport expect from Andy Burnham and Lisa Nandy?

    Sport Business
    GettyImages 2286323428: Business professionals in a meeting, discussing strategies with charts and laptops.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook