Minouche Shafik will join Keir Starmer as chief economic adviser, taking the post after a year leading a Foreign Office review of foreign aid spending. Shafik is a member of the House of Lords and resigned as president of Columbia University following criticism over the treatment of Jewish students during anti‑Israel protests. Her prior roles include head of the London School of Economics, deputy governor at the International Monetary Fund and top civil servant at the Foreign Office. No 10 aims to strengthen its economic unit ahead of the autumn budget after perceived Treasury missteps. Chancellor Rachel Reeves faces a £20bn–£40bn deficit challenge and is seeking senior advisers.
The former Bank of England deputy governor Minouche Shafik is set to join Keir Starmer's team as chief economic adviser. In a boost to the prime minister's office in the run-up to the autumn budget, Lady Shafik is expected to take on the role after a year heading a Foreign Office review of the government's foreign aid spending.
No 10 has sought to give more weight to its economic unit after a series of missteps that some Downing Street advisers have blamed on naivety inside the Treasury. Most recently, Rachel Reeves was forced to back down in the face of a backbench rebellion after she proposed cutting disability benefits. That retreat left the chancellor facing an even tougher challenge in her autumn budget, in which she is expected to have to set out plans to close a deficit of between 20bn and 40bn.
Shafik was previously head of the London School of Economics, a deputy governor of the International Monetary Fund and the top civil servant at the Foreign Office. In 2019 she was touted as a possible contender to replace Mark Carney as the Bank of England's governor.
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