What it means for energy and infrastructure
Prime Minister Sir Keir Starmer has carried out the first reshuffle of his time in power, triggered by Angela Rayner’s resignation as Deputy Prime Minister and Secretary of State for Housing, Communities and Local Government. A more sweeping reshuffle than had been previously expected, this was a calculated move to strengthen his government’s delivery, elevate loyal allies, and shift rightward to address public concerns and head off political threats. Affecting nearly half the cabinet, the reshuffle aimed to project competence and advance the Government’s “Plan for Change” amid declining polls and the rise of Nigel Farage’s Reform UK party.
Politically, Starmer prioritised trusted allies, notably promoting Justice Secretary Shabana Mahmood to Home Secretary following what has been seen to be effective delivery on prison reform. Mahmood’s elevation, alongside Darren Jones’s appointment as Chief Secretary to the Prime Minister, reflects Starmer’s reliance on loyalists on the right of the party to drive policy and an increased focus on delivery in his government’s “Phase 2”. This rightward tilt aims to respond to public discontent around immigration and the Government’s management of the economy, in an effort to both combat Starmer’s nemesis Farage and broaden Labour’s appeal ahead of what is set to be a challenging Budget on 26 November – with further tax rises seen as inevitable. However, this also risks alienating the party’s left and leaves Starmer vulnerable to increased support for the Green Party and his erstwhile nemesis Jeremy Corbyn’s new party. In energy, infrastructure and planning, Steve Reed’s appointment as Secretary of State for Housing, Communities and Local Government is central to delivering Labour’s 1.5 million homes target and the Planning and Infrastructure Bill, with Chancellor Rachel Reeves also said to be pushing for further and faster action on planning reform. Both Reed’s reputation for delivery and his previous experience of planning and housing in Opposition will be crucial in enabling success, as Starmer seeks to get back on the front foot after a turbulent start to Labour’s term in office.
Ed Miliband’s retention as Secretary of State for Energy Security and Net Zero ensures continuity in energy and net zero policy, even as a number of his junior ministers are swept away. Meanwhile, with Emma Reynolds MP appointed as Environment Secretary, the water sector faces a clear signal of tougher oversight. Having backed harsh penalties for sewage discharges, and with the Water (Special Measures) Act 2025 now in force, her tenure is likely to bring stricter enforcement, faster investment in clean-up infrastructure, and heightened regulatory accountability.
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