Minouche Shafik, former deputy governor of the Bank of England, is anticipated to join Keir Starmer’s team as the chief economic adviser. This move comes as the prime minister’s office prepares for the upcoming autumn budget. Shafik has recently led a review of the government’s foreign aid spending at the Foreign Office after resigning as president of Columbia University due to criticism regarding the treatment of Jewish students during protests at the institution.
A member of the House of Lords, Shafik’s background includes significant roles such as being head of the London School of Economics, deputy governor of the International Monetary Fund, and a senior civil servant at the Foreign Office. In 2019, she was considered a potential candidate to succeed Mark Carney as the governor of the Bank of England. With increased scrutiny on Downing Street’s economic strategies following recent challenges, the appointment aims to enhance the economic unit’s effectiveness.
Recently, Chancellor Rachel Reeves faced a backlash that compelled her to retract a proposal aimed at cutting disability benefits. This situation has placed additional pressure on her to navigate the autumn budget, which must address a deficit projected to be between £20 billion and £40 billion. Starmer appears to be seeking a robust economic advisory system that operates independently of the support provided to the chancellor.
While it is believed Reeves will remain in her position following Shafik’s appointment, speculation persists regarding her future, particularly if the upcoming budget does not yield positive results. There are also efforts to recruit influential advisers to the Treasury, particularly in light of reduced support from earlier collaborators.
Shafik’s appointment may prompt questions about her experience, given her extensive background in international development rather than a focused expertise in the UK economy. Starmer’s office has been approached for comments regarding this development.
Source: https://www.theguardian.com/politics/2025/aug/29/starmer-names-former-bank-of-england-deputy-governor-as-his-chief-economic-adviser