Cabinet reshuffle: Lucy Rigby replaces Emma Reynolds as City minister

Former solicitor general Lucy Rigby has been made Economic Secretary to the Treasury, a role often called the City minister, in the latest development in Starmer’s reshuffle.

Rigby replaces Emma Reynolds, a former City lobbyist who had held the role since last July but who has now become environment secretary.

In a post on X, Rigby said she was “delighted” to be appointed.

“It’s never been so important that we harness the might of our financial services sector, & drive investment & growth right across [Britain].” she wrote.

The City minister oversees the country’s financial services sector, including banking, insurance, asset management, financial regulation and stability.

Jason Stockwood becomes investment minister

Jason Stockwood has replaced Poppy Gustafsson as investment minister.

The serial tech entrepreneur has replaced Gustafsson, who previously served as CEO of Darktrace.

Stockwood is a majority shareholder and former CEO of Grimsby Town FC, as well as the former CEO of Simply Business.

Gustafsson quit as investment minister after just 11 months last week, citing challenging her professional schedule clashing with the demands of raising a young family.

Her departure is one of many amid a major reshuffle of Sir Keir Starmer’s top team, following Angela Rayner’s dramatic resignation.

Lammy appointed deputy PM

Last week, it was announced that David Lammy would serve as deputy prime minister, replacing Rayner.

Yvette Cooper has been moved to the Foreign Office to take Lammy’s old brief, while former former justice secretary Shabana Mahmood taking Cooper’s role as home secretary.

Closing out the job swap triangle, Lammy will also take on Mahmood’s former role as justice secretary, sealing a complete job swap between the three.

Pat McFadden has moved from the Cabinet Office to take up Liz Kendall’s role at the Department of Work and Pensions.

Lucy Powell, leader of the House of Commons, and Ian Murray, Scotland secretary, were the big departures, with each sacked from their cabinet positions.

The full reshuffle looks as follows:

• David Lammy: Deputy Prime Minister and Secretary of State for Justice.
  Yvette Cooper: Secretary of State for Foreign, Commonwealth and Development Affairs.
  Shabana Mahmood: Secretary of State for the Home Department.
  Darren Jones: Chancellor of the Duchy of Lancaster and Chief Secretary to the Prime Minister.
  Pat McFadden: Secretary of State for Work and Pensions.
  Steve Reed: Secretary of State for Housing, Communities and Local Government.
  Peter Kyle: Secretary of State for Business and Trade and President of the Board of Trade.
  Liz Kendal: Secretary of State for Science, Innovation and Technology.
  Emma Reynolds: Secretary of State for Environment, Food and Rural Affairs.
  Douglas Alexander: Secretary of State for Scotland.
  Jonathan Reynolds: Parliamentary Secretary to the Treasury (Chief Whip).
  Sir Alan Campbell: Lord President of the Council and Leader of the House of Commons.

Rachel Reeves’ role as Chancellor was understood to be locked in to avoid disturbing markets.

Ministers react to reshuffle

Murray has said he is “hugely disappointed to be leaving government” in a letter posted on social media.

He called serving as Scottish Secretary the “honour of his life”.

Powell has also said it was “an honour to service in first Labour government”.

There had been talks of reshuffle in junior ministerial roles taking place this past Monday, but was subsequently delayed after Rayner’s stamp duty scandal.

The Prime Minister’s standards adviser concluded Rayner had breached ministerial code but praised her for “full and open cooperation in assisting me with my inquiries”.

The exit of Rayner marks the seventh departure in nearly a year for Labour following resignations from former Transport Secretary Louise Haigh’s and City minister Tulip Siddiq.

Also announced on Friday, Poppy Gustafsson – the former boss of tech darling Darktrace – quit her role as the investment minister.

The deputy leader question

The departure of Angela Rayner raises a big question beyond government as Labour now finds itself without a deputy leader.

The party elects their leader and deputy through internal elections. In 2020, Rayner bested Rosena Allin-Khan and Richard Burgon to the leadership title with nearly half of the vote.

The Deputy Prime Minister and leader roles are distinct titles with precedent for the posts to be filled by different MPs.

In 2007 Harriet Harman was elected deputy leader, a role she continued in until 2015, but was never made Deputy Prime Minister.

Starmer’s appointment of a Deputy Prime Minister would be set to have significant implications on a leadership for the deputy position.

The frenzy and speculation is bound to mark a headache for the Prime Minister who announced “phase two of his government” on Monday.