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Sir Keir Starmer put past government experience and an appetite for public service reform at the heart of his reshuffle.

The result was more wins for those on the right of the party, reflecting the “change” since the Corbyn years.

The Labour leader has made clear the reshuffle, the first full-blown reset of his top team since May 2021, put his “strongest possible players on the pitch” and represented a government in waiting “determined to solve the challenges we have”.

He left the top three jobs – shadow chancellor, home secretary and foreign secretary – untouched, but brought in a handful of fresh faces and showed his ruthlessness by demoting those suspected of briefing against him.

Hilary Benn, a former cabinet minister under Tony Blair and Gordon Brown and a big figure in Labour politics, returns to the frontline with the Northern Ireland role. He will steady the nerves of the party as his appointment represents the endorsement of Sir Keir by a serious figure not associated with the factionalism of his father, Tony Benn.

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Liz Kendall, who was a special adviser in the last Labour government, gets the work and pensions brief – while Pat McFadden gets a big upgrade after being made campaign chief with a Cabinet Office portfolio. Both figures are identified with the Blair wing of the Labour Party, who were uncomfortable during the Corbyn years and can antagonise some on the left.

More on Keir Starmer

Deputy leader Angela Rayner emerges “score-draw” with what some claim is a mid-level role – shadowing the Department for Levelling Up – but holds onto the work brief so unions will be relieved, and she gets Deputy PM moniker officially.

Allies of Sir Keir reject this suggestion, saying the levelling up brief encompasses some of Labour’s highest priorities on social justice, housing and planning – but everyone will be looking to Ms Rayner to publicly demonstrate her enthusiasm for the new role.

Read more:
The promotions and demotions in full
SNP reshuffles its frontbench too

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Who is in and out of Starmer’s cabinet?

The biggest loser was one-time leadership contender Lisa Nandy, whose personal relationship with Sir Keir never recovered after the leadership race.

I’m told the conversation was tricky: initially the Labour leader just said he wanted her to do this role and bigged it up. Ms Nandy then said “it sounds like you don’t really want me” and he effectively admitted that. Swallowing her pride, however, subsequently she put out a statement saying she’s a team player and accepted the job – the number two in the Foreign Office, shadowing international development with the right to attend cabinet.

One figure called it a “factional takeover” by some on the right of the party – the balance of the top team certainly very different to the shadow cabinet he appointed when he took over in 2020.

Some will point to the influence of the backroom campaign chief Morgan McSweeney, who has a fractious relationship with the left of the party, though often Labour staff members can become bogeymen for elected politicians not wanted to blame the leader themselves.

But most of all, Sir Keir will be relieved it is over. In May 2021, his first big reshuffle went awry when a series of figures from Ms Rayner downwards refused to move and he had to back down.

Asked how it felt, the Labour leader told me: “I was really pleased that we started at nine o’clock this morning. We’d finished by half past 12. And everybody’s pleased with the position they’ve now got in the shadow cabinet. I’m very, very pleased with this reshuffle.”

The body language suggests he was indeed happy with the result.

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BTC-e operator to be released as part of US-Russia prisoner swap: WSJ

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BTC-e operator to be released as part of US-Russia prisoner swap: WSJ

Schoolteacher Marc Fogel returned to the US on Feb. 11 as part of a deal with Russian authorities that will reportedly include the release of Alexander Vinnik.

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Treasury launches inquiry into leak of growth forecasts

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Treasury launches inquiry into leak of growth forecasts

A leak inquiry will take place following reports that economic growth forecasts have been reduced by the government’s financial watchdog.

Bloomberg reported that the Office for Budget Responsibility (OBR) had reduced its growth forecasts in data sent to Chancellor Rachel Reeves last week.

Reduced growth could force the government to cut further spending or increase more taxes.

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The next forecast is set to be published in March – with the process supposed to remain confidential until that point.

The inquiry was confirmed by James Bowler, the most senior civil servant in the Treasury.

He told the House of Commons Treasury Committee: “We will undertake an inquiry, and I’m happy to communicate the outcome of that.”

The government’s attempts to grow the UK economy have proved difficult since the election last year, and businesses have complained about measures introduced in Ms Reeves’s first budget.

Part of Labour’s plan involves increasing house building and development, although these plans were not included in the forecasts for last October’s budget.

Mr Bowler sought to play down the fact that a leak inquiry was happening meant that what was reported by Bloomberg was true.

Asked by committee chair Meg Hillier about the inquiry, the civil servant appeared to indicate about 50 people in the Treasury would have been able to see the forecasts.

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Bank of England issues growth blow

He said an investigation into OBR officials would likely also happen, although the body is independent of government.

Downing Street has tried to remain bullish about the economic situation.

A Number 10 spokesperson said: “In recent weeks and months, the [Organisation for Economic Co-operation and Development] and the [International Monetary Fund] have upgraded our growth forecast over the next three years.”

They added: “The government remains relentlessly focused on growth as the only way of sustainably raising living standards and delivering the investment that we need in our public services.”

Read more:
Growth forecasts cut in blow for Reeves

Starmer has growth battle on his hands
Reeves calls in bank chiefs for growth talks

Both bodies mentioned slightly increased their growth forecasts, but they still remain below 2%.

Last week, the Bank of England halved its growth expectations for the UK – saying it would only increase by 0.75% in 2025, before increasing to 1.5% for the next two years.

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The OBR’s forecasts have a more direct impact, as the Treasury use them to measure if they are meeting their fiscal rules.

GDP figures are set to be published tomorrow, which will show how the UK economy was performing to the end of 2024.

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Coinbase and Base: Is crypto just becoming traditional finance 2.0?

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Coinbase and Base: Is crypto just becoming traditional finance 2.0?

The future of crypto looks more like Facebook’s abandoned Diem project than the cypherpunk ethos that Bitcoin started with 16 years ago.

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