Minouche Shafik to Become Keir Starmer’s Chief Economic Adviser
Former Bank of England deputy governor Minouche Shafik is expected to join Keir Starmer’s team as his chief economic adviser.
Her appointment comes as the prime minister’s office prepares for the autumn budget, following Shafik’s recent leadership of a Foreign Office review on international aid spending.
A member of the House of Lords, Shafik stepped down last year as president of Columbia University amid controversy over the handling of protests involving Jewish students on the New York campus.
Before that, she served as director of the London School of Economics, deputy managing director of the International Monetary Fund, and held a senior civil service role at the Foreign Office. In 2019, she was considered a potential candidate to succeed Mark Carney as governor of the Bank of England.
The decision to bring in Shafik follows concerns about economic policy missteps, with some accusing the Treasury of inexperience.
Recently, Rachel Reeves faced opposition from her own party after proposing reductions to disability benefits, forcing her to abandon the plan. The setback has made the chancellor’s task of balancing the budget—which may require addressing a deficit of £20bn to £40bn—even more difficult.
Starmer is said to prefer independent economic counsel rather than relying solely on Treasury guidance.
This approach differs from that of Boris Johnson’s administration, where former chancellor Sajid Javid resigned after the prime minister’s office asserted control over Treasury decisions.
Though Reeves is not expected to leave her post following Shafik’s appointment, speculation persists that her position could be at risk if the upcoming budget fails to meet political and economic expectations.
Reeves has been working to strengthen her team after key advisers, including the LSE’s John Van Reenen and Anna Valero, reduced their involvement.
Some in government had hoped for an appointment with stronger UK-specific expertise, given Shafik’s career focus on global poverty solutions. However, her time on the Bank of England’s monetary policy committee and at the LSE is seen as evidence of her familiarity with the British economy.
CuriosityNews approached Starmer’s office for comment.
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