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Reading: Keir starmer makes a bold move after Rayner’s resignation to shake up the UK Cabinet
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Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > Keir starmer makes a bold move after Rayner’s resignation to shake up the UK Cabinet
Economic News

Keir starmer makes a bold move after Rayner’s resignation to shake up the UK Cabinet

Last updated: September 5, 2025 7:09 pm
By Michelle Whelan 4 Min Read
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Keir starmer reshuffled his cabinet on Friday to try and stabilize the government following Angela Rayner’s shock resignation as Deputy Premier.

Contents
Rayner’s resignation has triggered major changesThe Analysts: Resetting the system amid increasing pressure

The reshuffle brought about some significant changes. David Lammy was promoted to Deputy Prime Minister and Justice Secretary from his previous role as Foreign Secretary. Yvette cooper moved from her former position of Home Secretary to become Foreign Secretary. Shabana Mahamood took over the home secretary’s job.

Rayner’s resignation has triggered major changes

The whole thing started when Rayner was forced out of her job after she became embroiled in a scandal involving taxation.

Unbiased ethics advisor ruled that she violated the Ministerial Code by not paying stamp duty for a purchase of a house. This may seem minor, but it became a big headache.

Rayner’s loss was felt by Labour’s Left Wing, as she was seen to be Starmer’s most loyal ally.

She accepted full responsibility for the mistake and attributed it to not having received proper tax advice when dealing with family properties.

Starmer’s timing could not be more unfortunate. Starmer’s government is struggling to deal with the growing support for Nigel Farage and Reform UK. Reform UK has gained ground on Labour by attacking them over immigration and economic issues.

You can see that the government is losing direction after recent U-turns in welfare reforms, fuel subsidies and other areas.

Starmer is trying to make the situation look good by talking about ethics and integrity, but it’s clear that he had to act quickly to stop the bloodshed.

Lammy’s promotion to deputy PM is a good move. He has experience, loyalty, and the ability to handle complicated portfolios when situations get chaotic.

Cooper’s continued role as foreign secretary keeps another trusted ally in the thick of things.

The Analysts: Resetting the system amid increasing pressure

Analysts call this Starmer’s effort to reset a government which has been in a shaky state lately.

Starmer’s reshuffle indicates that he is aware of the urgency to set his priorities.

It’s a big question whether rearranging the deckchairs is sufficient to solve Labour’s deepest problems.

The pressure is coming from many directions. Reform UK has been eating away at their support. Critics have criticized policy flip-flops. And now, this scandal over ethics that brought down a key figure.

Starmer’s team faces some immediate challenges, as local elections are coming and the general election is always on the horizon.

Lammy and Cooper make solid choices who will be able handle pressure. However, they must start making policy changes quickly.

Credibility of the government has been damaged, and it’s not known that voters have much patience with political scandals and drama.

The outcome of this will likely determine if Starmer is able to get Labour on track, or if it’s just the start of larger problems in the future.

As new developments unfold, this post UK Cabinet Shake-up: Keir’s Starmer’s Bold Reset after Rayner’s Resignation may be updated.

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