Torsten Bell is to assist lead Finances preparations as Rachel Reeves seeks to recuperate from probably the most fraught interval of her chancellorship. The previous Decision Basis head, who grew to become pensions minister and parliamentary secretary to the Treasury again in January, will tackle further accountability for financial coverage.
A Reeves ally stated that she values Bell as one in every of Labour’s “sharpest minds” and as somebody who has “seen the Finances from each ends: within the room serving to to jot down them and on the As we speak programme dissecting them”. Bell first entered the Treasury in his mid-20s as a particular adviser to Alistair Darling in the course of the 2008 monetary disaster earlier than serving as Labour’s director of coverage throughout Ed Miliband’s management.
“He was a critical individual doing a troublesome job at a troublesome time,” Bell stated of Darling in an interview with the New Statesman final yr. “He taught me that good politicians are people who perceive their function is to take a choice – that’s actually the little bit of democracy that issues.”
Requested if Bell had, in impact, change into deputy chancellor, Treasury sources emphasised that Spencer Livermore, the Monetary Secretary to the Treasury and a former No 10 technique director, would stay Reeves’ closest ministerial colleague however praised Bell as somebody with a “lot of respect” amongst each the division and the broader coverage world. Darren Jones, the Chief Secretary to the Treasury, has been tasked with main the federal government’s infrastructure technique and supporting No 10 and Cupboard Workplace minister Pat McFadden on public sector reform.
In different adjustments to Reeves’ Treasury workforce, Katie Martin, her long-serving chief of employees, will assume further accountability for enterprise relations in what can be seen as a bid to heal relations frayed by Labour’s Nationwide Insurance coverage improve final autumn. Whereas in opposition, Martin led the get together’s “smoked salmon offensive” and was credited with persuading 121 enterprise leaders to endorse Labour in a pre-election letter.
Ben Nunn, Reeves’ media aide since 2023, will change into director of communications and technique and Matt Pound, her political secretary, will change into political director. Each led preparations for the latest Spending Evaluation and play a key bridging function between No 10 and No 11: Nunn beforehand served as Keir Starmer’s communications director and Pound labored carefully with Morgan McSweeney, No 10’s chief of employees, on get together rule adjustments and parliamentary picks.
The reshuffle, which was finalised by Reeves throughout her latest Cornwall vacation and can be formally introduced to the Treasury tomorrow morning, may also see Neil Foster appointed as a particular adviser. Foster, a former GMB official who labored for Reeves in opposition, will deal with relations with the parliamentary get together and the commerce union motion.
Within the coming weeks Reeves may also announce new appointments to her Council of Financial Advisers to replicate the departure of Anna Valero and the lowered function of John Van Reenen, who will now work someday every week slightly than three as he returns to the London College of Economics. Throughout summer season conferences with Starmer and McSweeney, Reeves has additionally confused the significance of appointing a No 10 financial adviser. “The Treasury’s highly effective however No 10 is in cost and if we wish all departments and all components of presidency centered on this space we have to strengthen No 10’s financial voice,” stated an ally.
The Chancellor’s second Finances, which is anticipated to be delivered in November, will deal with two priorities: growing financial productiveness and rewarding contribution. “Rachel doesn’t settle for that the financial system is damaged however she does settle for that for lots of working individuals it doesn’t really feel like it really works for them,” stated an aide, referring to a way that “individuals put loads in however don’t get loads out”. Final yr, Bell, who has beforehand advocated equalising capital features and revenue tax charges, informed the New Statesman: “My view on tax technique is that we do must be cautious as a rustic to not tax employees’ wages greater than we tax every thing else.”
Reeves’ workforce are inspired by latest knowledge exhibiting that the UK is the fastest-growing G7 financial system thus far this yr and that personal sector exercise has reached a 12-month excessive. However they’re braced for the Workplace for Finances Duty to downgrade productiveness progress, necessitating tax rises to fill a black gap estimated by economists at round £20bn.