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Politics
17 September 2025

Starmer Reshuffles Cabinet After Rayner Resignation

A major shake-up at No 10 signals Labour’s push for faster results but exposes deep challenges in Britain’s centralised system of governance.

On September 16, 2025, a wave of change swept through the heart of the British government as Prime Minister Keir Starmer orchestrated a sweeping reshuffle of his Cabinet and top advisers. The catalyst for this shake-up was the high-profile resignation of Angela Rayner, who stepped down as deputy prime minister and housing secretary after admitting to underpaying stamp duty on a property purchase—a scandal that sent ripples across Westminster and beyond, according to The Conversation. But what began as a forced response to a political crisis quickly turned into a decisive moment for Starmer’s Labour government, one that could redefine its trajectory as it enters the next crucial phase of its “plan for change.”

At the heart of the reshuffle is a renewed focus on what No 10 now calls “phase two”—the era of “delivery, delivery, delivery.” With the government’s self-declared “phase one”—fixing the foundations—now deemed complete, Starmer and his team are shifting gears from repairing the damage of previous Conservative administrations to demonstrating tangible results to voters. The stakes couldn’t be higher, with the next general election looming and public patience wearing thin after years of political turbulence and economic uncertainty.

One of the most significant moves in this overhaul was the appointment of Darren Jones, formerly of the Treasury, to the newly created role of chief secretary to the prime minister. In a notable break from tradition, Jones has been given “operational oversight” of the government’s entire programme and will head a new No.10 delivery unit, replacing the short-lived Mission Delivery Unit that Labour established when it first took office. According to The Conversation, Jones’s proximity to Starmer at the cabinet table—just two seats away—signals his elevated influence and the centrality of delivery to the government’s mission going forward.

This new delivery unit is emblematic of a broader push to centralize power within No 10 and sharpen the machinery of government. Starmer’s frustration with sluggish decision-making has been well documented, and the reshuffle is widely seen as an attempt to overcome what one source described as an “overcautious and flabby state.” By recouping powers previously delegated to quangos and strengthening the centre’s strategic infrastructure, the prime minister hopes to turn policy promises into reality more swiftly and convincingly.

Other appointments reinforce this assertive approach. Peter Kyle, who previously served as science, innovation and technology secretary, now takes the helm as business secretary, replacing Jonathan Reynolds, who moves to become parliamentary secretary to the Treasury (chief whip). Kyle wasted no time in setting out his stall, telling business groups that he intends to deliver an “ambitious” growth agenda and help create the UK’s first trillion-dollar business. He also pledged to make Britain the best place in the world for start-ups and scale-ups, emphasizing a greater appetite for risk-taking and innovation, as reported by Small Business.

The reshuffle also saw the departure of several key figures. Small business minister Gareth Thomas, who had been in post since July 2024, lost his job and is set to be replaced by either Blair McDougall MP or Kate Dearden MP, both recently appointed as parliamentary under-secretaries of state. Meanwhile, Jason Stockwood, entrepreneur and co-owner of Grimsby Town Football Club, was appointed investment minister with a life peerage, succeeding Poppy Gustafsson following her resignation in October 2024. Employment rights minister Justin Madders was also ousted, raising concerns about the future of Labour’s much-touted Employment Rights Bill. Sharing a Guardian article that aired these fears, Madders posted on X: “Let’s hope these fears are unfounded because it would be really, really foolish for the Government to row back on key manifesto commitments that are popular with the public and will show what a positive difference a Labour Government can make.”

The Department for Science, Innovation & Technology also saw fresh faces. Liz Kendall, previously work and pensions secretary, is now at the helm, while Kanishka Narayan, MP for Vale of Glamorgan and a former investor and adviser to start-ups, joined the department. Narayan’s local initiative, All Hands On Tech, aims to create 1,000 digital technology jobs in his constituency by 2030, reflecting the government’s broader commitment to tech-driven growth.

Yet, for all the talk of delivery and centralization, critics and commentators warn that the government’s approach risks exacerbating long-standing weaknesses in the British state. The UK’s governance system is already regarded as one of the most centralized in the Western world, with central government holding a near-monopoly over executive and legislative power. Despite the creation of new delivery units and the abolition of some quangos—such as NHS England—to streamline administration, the core problem of “power without capacity” remains unresolved, according to The Conversation.

Frontline public services, battered by years of cuts and a heavy reliance on outsourcing, continue to struggle. Local government remains weak, and the much-discussed dependency on the centre shows little sign of abating. Starmer’s government has even proposed giving the justice secretary veto power over sentencing council decisions and weakening court challenges to planning regulations—moves that critics say could further erode checks and balances.

Some policy experts have suggested more radical reforms to truly strengthen the state’s capacity to deliver. These include breaking up the Treasury’s monopoly over fiscal policy by establishing a department for growth, creating a dedicated department for the civil service to boost accountability, and—perhaps most significantly—empowering local governments with greater fiscal autonomy. The 2022 Brown report, commissioned by the Labour Party while in opposition, laid out many of these ideas, including replacing the House of Lords with an elected chamber of nations and regions. However, these proposals have largely been ignored since Labour formed the government.

As ministers arrived at Downing Street for the first cabinet meeting following the reshuffle, the mood was one of cautious optimism mixed with underlying tension. The government’s new team faces the daunting challenge of not just consolidating power, but actually delivering on the promises that swept Labour into office. Without deeper, more foundational reforms to the machinery of government, some observers warn that the prospects for meaningful change—and for the “delivery, delivery, delivery” mantra to become more than a slogan—may be limited.

For now, all eyes are on No 10 as Starmer and his revamped team embark on this new phase. The coming months will test whether the reshuffle and renewed focus on delivery can overcome the systemic obstacles that have long bedeviled British prime ministers, or whether the old patterns of centralization without capacity will persist. One thing is certain: the electorate will be watching closely, eager for evidence that real change is finally within reach.

In the end, the success of Starmer’s second phase will hinge not just on who holds which ministerial portfolio, but on whether the government can finally bridge the gap between power and effective action—an age-old challenge that has, so far, eluded even the most determined leaders.