Sir Keir Starmer has undermined Rachel Reeves’s authority after he appointed a former Treasury insider as a key aide.
Olaf Henricson-Bell, a career civil servant, was made the new leader of the Downing street policy unit.
Henricson-Bell was the most senior communications adviser to three chancellors under the Conservative government.
This move comes as worries have arisen around Labour’s economic approach, due to Reeves’s direction of travel and tax rises of £40 billion in last year’s budget.
Henricson-Bell was the most senior communications adviser to three chancellors under the Conservative government
On Monday, Starmer appeared to dodge a question on Reeves’s future, refusing to confirm she would still be Chancellor at the next election.
However, his spokesman later insisted that she would be kept in post.
When appointing Henricson-Bell, No10 pointed to his work as press secretary to the chancellor and head of communications at the Treasury between February 2019 and June 2021.
During this time, he worked with Lord Hammond, Sir Sajid Javid and Rishi Sunak.
His appointment comes after The Sunday Times reported that the PM was being pressured to appoint a chief economic adviser amid the Government’s economic difficulties.
Last week, the Treasury was forced to intervene to stabilise the financial market due to growing anxiety over the impact of the Chancellor’s fiscal event in October of last year.
This is the first statement issued of this kind since the 2022 mini Budget, dismissing any suggestions that rising debt has wiped out Reeves’s headroom as “pure speculation”.
On Monday, the Institute of Directors (IoD) issued a warning saying that business confidence and economic growth had dwindled since Reeves took office last July.
On Monday, Starmer appeared to dodge a question on Reeves’s future
PA
Chief economist at IoD Anna Leach said: “The snuffing out of growth in the latter part of 2024 will leave the Chancellor with little fiscal room if any.”
Reeves has implemented several unpopular policies, such as stripping millions of pensioners of their winter fuel payments and a rise in employer’s National Insurance.
Prior to his appointment by Starmer, Henricson-Bell worked as the Foreign Office’s EU director – a role he held for almost four years.
His prior work at the Foreign Office between 2008 and 2019 included work in its counter-terror department, the forced marriage unit and two years as head of EU communications at the British Embassy in Paris.
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