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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.

PM backs Keegan after sweary outburst – politics latest

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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Crypto’s path to legitimacy runs through the CARF regulation

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Crypto’s path to legitimacy runs through the CARF regulation

Crypto’s path to legitimacy runs through the CARF regulation

The CARF regulation, which brings crypto under global tax reporting standards akin to traditional finance, marks a crucial turning point.

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Tokenized equity still in regulatory grey zone — Attorneys

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Tokenized equity still in regulatory grey zone — Attorneys

Tokenized equity still in regulatory grey zone — Attorneys

The nascent real-world tokenized assets track prices but do not provide investors the same legal rights as holding the underlying instruments.

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

Rachel Reeves has hinted that taxes are likely to be raised this autumn after a major U-turn on the government’s controversial welfare bill.

Sir Keir Starmer’s Universal Credit and Personal Independent Payment Bill passed through the House of Commons on Tuesday after multiple concessions and threats of a major rebellion.

MPs ended up voting for only one part of the plan: a cut to universal credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Initially aimed at saving £5.5bn, it now leaves the government with an estimated £5.5bn black hole – close to breaching Ms Reeves’s fiscal rules set out last year.

Read more:
Yet another fiscal ‘black hole’? Here’s why this one matters

Success or failure: One year of Keir in nine charts

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Rachel Reeves’s fiscal dilemma

In an interview with The Guardian, the chancellor did not rule out tax rises later in the year, saying there were “costs” to watering down the welfare bill.

“I’m not going to [rule out tax rises], because it would be irresponsible for a chancellor to do that,” Ms Reeves told the outlet.

More on Rachel Reeves

“We took the decisions last year to draw a line under unfunded commitments and economic mismanagement.

“So we’ll never have to do something like that again. But there are costs to what happened.”

Meanwhile, The Times reported that, ahead of the Commons vote on the welfare bill, Ms Reeves told cabinet ministers the decision to offer concessions would mean taxes would have to be raised.

The outlet reported that the chancellor said the tax rises would be smaller than those announced in the 2024 budget, but that she is expected to have to raise tens of billions more.

It comes after Ms Reeves said she was “totally” up to continuing as chancellor after appearing tearful at Prime Minister’s Questions.

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Why was the chancellor crying at PMQs?

Criticising Sir Keir for the U-turns on benefit reform during PMQs, Conservative leader Kemi Badenoch said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.

Sir Keir did not explicitly say that she would, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

In her first comments after the incident, Ms Reeves said she was having a “tough day” before adding: “People saw I was upset, but that was yesterday.

“Today’s a new day and I’m just cracking on with the job.”

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Reeves is ‘totally’ up for the job

Sir Keir also told Sky News’ political editor Beth Rigby on Thursday that he “didn’t appreciate” that Ms Reeves was crying in the Commons.

“In PMQs, it is bang, bang, bang,” he said. “That’s what it was yesterday.

“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”

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