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Sir Keir Starmer has unveiled a new \u2018Budget board\u2019 potentially reshaping the government’s approach to fiscal policy, seeking to balance pro-growth initiatives with maintaining strong relations with the business community ahead of the upcoming Budget.<\/p>\n<\/div>\n
Sir Keir Starmer has introduced a new \u201cBudget board\u201d aimed at driving economic growth while maintaining positive relations with the business community, according to reports. The board is designed to link top ministers and officials at 10 Downing Street with the Treasury, playing a central role in coordinating pro-growth policies as the government prepares for the upcoming Budget scheduled for 26 November.<\/p>\n
The board will be chaired by Baroness Minouche Shafik, Starmer\u2019s recently appointed economic adviser and former deputy governor of the Bank of England, alongside Treasury minister Torsten Bell. It will also include influential figures such as Darren Jones, a former Treasury minister and now chief secretary to the prime minister, as well as key chiefs of staff to Starmer and Chancellor Rachel Reeves. Business advisor Varun Chandra, former managing partner of Hakluyt, has also been brought in to strengthen ties with corporate executives and international investors. The communications strategy around the Budget will be managed by the chancellor\u2019s press chief, Ben Nunn, and Tim Allan, the new Number 10 director of communications.<\/p>\n
This initiative marks a strategic shift following Chancellor Rachel Reeves\u2019 previous Budget, which caused notable friction with businesses by increasing employers\u2019 national insurance contributions by \u00a325 billion and raising the minimum wage substantially. The business sector has expressed concern over potential further tax rises as the government seeks to close a fiscal gap estimated at around \u00a320 billion. Starmer\u2019s allies have emphasised that the new board\u2019s purpose is to ensure a pro-business approach to the Budget, with clear messaging aimed at reassuring the corporate world that tax increases will not be the sole policy focus.<\/p>\n
Further signalling his government\u2019s renewed economic focus, Starmer recently undertook a significant Cabinet reshuffle. This included appointing Yvette Cooper as Foreign Secretary, Shabana Mahmood as Home Secretary, and David Lammy as Deputy Prime Minister. The reshuffle aims to enhance policy coordination and address both domestic and international challenges. Liz Kendall was appointed as Secretary of State for Science, Innovation and Technology, with Peter Kyle taking the role of Business Secretary and Pat McFadden heading the Department for Work and Pensions.<\/p>\n
In addition to institutional reforms, Starmer and Reeves have announced plans to stimulate growth by unlocking corporate pension surpluses for reinvestment. This move, welcomed in business circles, involves releasing over \u00a3100 billion of pension reserves to promote private sector investment and infrastructure development. The announcement followed a meeting in London with prominent business leaders, where the prime minister sought to underline his government\u2019s commitment to fostering economic expansion and maintaining open communication with corporate stakeholders.<\/p>\n
However, Starmer\u2019s government faces some internal dissent on fiscal matters beyond the domestic economic agenda. Labour backbenchers have voiced strong opposition to cuts in the international development budget, which has been nearly halved to redirect funds towards increased defence spending. MPs such as Sarah Champion and Anneliese Dodds have urged the government to reconsider these measures, highlighting tensions within the party over budget priorities.<\/p>\n
Overall, the establishment of the Budget board and the broader reshuffle reflect Starmer\u2019s intention to steer his administration towards growth-oriented policies while managing complex economic and political pressures. The success of these efforts will be closely watched by businesses and political observers alike, as the government navigates a challenging fiscal landscape ahead of the forthcoming Budget.<\/p>\n