Sir Keir Starmer has appointed a former Treasury insider, Olaf Henricson-Bell, as the new head of the No 10 policy unit. This move comes amidst growing concerns over Labour’s economic approach and Rachel Reeves’ credibility as Chancellor.
Henricson-Bell, a career civil servant, has been the most senior communications adviser to three successive chancellors under the previous Tory government. His appointment is seen as a significant blow to Reeves’ authority, with questions mounting about Labour’s economic direction.
On Monday, Sir Keir cast doubt over Reeves’ future by refusing to guarantee that she would still be Chancellor at the next election. His spokesman was later forced to insist that she would be kept in post.
Reeves has presided over a number of unpopular decisions, including a rise in employer’s National Insurance and stripping 10 million pensioners of their winter fuel payment. The Institute of Directors has warned that an economic slowdown since Labour’s landslide election victory has almost eroded Reeves’ flexibility altogether.
Downing Street pointed to Henricson-Bell’s tenure as press secretary to the chancellor and head of communications at the Treasury between February 2019 and June 2021, during which time he worked closely with Lord Hammond, Sir Sajid Javid and Rishi Sunak.
His appointment comes after The Sunday Times reported that Sir Keir was being urged to appoint a chief economic adviser, even by figures in the Treasury, amid the Government’s economic woes. Such a move would significantly undermine Reeves’ authority.
Last week, the Treasury was forced to intervene to stabilise the financial markets amid growing concern over the impact of Reeves’ first fiscal event last October. It issued the first statement of its kind since the 2022 mini-Budget, trying to dismiss as “pure speculation” any suggestion rising debt costs had wiped out the Chancellor’s headroom.
Prior to his appointment by Sir Keir, Henricson-Bell was working as the Foreign Office’s EU director, a role he had held for almost four years. He took on the job in June 2021 as Boris Johnson sought to capitalise on the benefits of Brexit, spending the first year in the Cabinet Office.
More recently, he had a key role in the Labour Government’s attempts to “reset” Britain’s relationship with the European Union during its first six months in power.
