Sir Keir Starmer has established a “budget board” comprising ministers and officials to repair strained relations with businesses and the City, while consolidating control over economic policy. The panel will convene weekly to coordinate “pro-growth policies” in anticipation of the forthcoming Autumn Budget on 26 November. This initiative is also intended to keep businesses and City leaders aligned, according to officials who spoke to the Financial Times.
The board will be co-chaired by Baroness Minouche Shafik, Starmer’s economic adviser, and Torsten Bell, a Treasury minister. Varun Chandra, Starmer’s business adviser, is also a member, alongside Tim Allen, the new Number 10 communications chief. Other participants include Morgan McSweeney and Katie Martin, chiefs of staff to Starmer and Reeves, respectively, as well as Ben Nunn, the chancellor’s press chief. Darren Jones, a former Treasury minister now serving as “chief secretary” to the prime minister, is also a key figure on the panel.
The “budget board” includes significant business voices, acknowledging the potential strain on corporate relations in the coming months. Chancellor Rachel Reeves previously damaged relations with UK business in her initial Budget last October by raising employers’ national insurance by £25bn and proposing a substantial increase in the national minimum wage.
A Labour official stated, “This is about putting more weight behind a pro-business budget.” Another added, “The budget board will funnel into the decisions that the prime minister and chancellor take. We don’t want to find ourselves in a difficult position with business again.” Allies of Starmer assert that the board was formed in agreement with the chancellor, focusing on stimulating growth while maintaining communication with the business community ahead of the Budget.
Businesses and the City anticipate higher taxes as Reeves and the Treasury seek to address a fiscal shortfall of at least £20bn, posing a risk of further estrangement from corporate Britain and potential economic growth challenges. While Reeves’ supporters claim she supports the creation of a stronger economic team, she faces scrutiny following unsuccessful attempts to cut winter fuel payments for pensioners and the abandoned plan to reduce £5bn in welfare benefits.
The Treasury has stated that the government will “focus on building an economy that works for working people” in the upcoming Budget. Meanwhile, Starmer has instructed ministers to reassure businesses in the coming weeks that they have a strategy to enhance national output, with emphasis on planning and new infrastructure projects.
