To the unsuspecting onlooker, it would appear that Sir Keir Starmer is running a rather slick operation. With his Cabinet appointed and his Downing Street team in place, a steady drumbeat of Government announcements has dominated the news agenda this week.
But just over a week into the new regime, tensions are already bubbling away under the surface. Allies of Angela Rayner, the deputy prime minister and Housing Secretary, fear she is being “frozen out” and believe she is already being unfairly stripped of responsibilities.
Ms Rayner, directly elected by Labour members as deputy PM and therefore unsackable, has already been identified as the biggest potential threat to Sir Keir’s authority.
Rayner has own power base in party
The darling of the Left, she has her own power base within the party and is particularly popular among those who, like herself, have come up through the party from the trade union movement.
A Savanta poll earlier this month showed that Ms Rayner was by far the most popular choice among Labour voters to succeed Sir Keir, and she has a powerful mandate from the membership, having been elected deputy leader in 2020 with more than twice as many votes in the final round as her nearest rival, Rosena Allin-Khan.
However, friends of Ms Rayner are growing concerned that her authority is being gradually and subtly undermined.
While in opposition, Ms Rayner had been leading on one of Labour’s flagship policies, the New Deal For Working People which promises to boost wages and give workers more rights.
But it is now Jonathan Reynolds, the Business Secretary, whose department will take the lead on this, relegating Ms Rayner to an interested onlooker.
“This probably means that the New Deal will get killed off as Jonny Reynolds will want to do what is best for business, not what is best for the unions – it will be a clash,” one Labour party source said.
According to party insiders, there is now growing speculation that Ms Rayner is also set to have the planning brief taken away from her, after Rachel Reeves made this the focus of her first major speech as Chancellor.
“Angela has been frozen out of everything. She was sitting in the front row of a speech about her own department,” a source said.
Friends urge Rayner to ‘get out there’
Others point to the fact that many of Ms Rayner’s shadow cabinet team were overlooked when it came to getting jobs in government. Mike Amesbury, Paula Barker and Flo Eshalomi, close allies and members of her shadow housing team, have been relegated to the backbenches.
Matt Pennycook and Jim McMahon, also members of her shadow team, have been appointed as ministers in her department.
Friends of Ms Rayner are urging her to “get out there” more and take ownership of her brief.
One said: “Everyone has been looking busy – Wes, Ed and Rachel have all been out there doing things. Within a few days she is already being frozen out of stuff, having parts of her brief taken off her – it is not a great start.”
Wes Streeting used his first day as Health Secretary to declare that the NHS is “broken” and this would be his department’s official policy. He went on to hold a first round of talks with the British Medical Association, aimed at breaking the deadlock on junior doctor strikes.
Meanwhile, Ms Reeves chose the Churchill Room at the Treasury to deliver her maiden speech as Chancellor. Some of the most important announcements of the last century have been delivered there, including the creation of the NHS and the announcement of the Bank of England’s independence.
And Ed Miliband, the Energy Secretary, has spent the past few days implementing a ban on North Sea Oil and setting up a new Net Zero task force.
One issue said to be hampering Ms Rayner is that the office of the deputy prime minister has not yet been defined. Nick Parrott, her chief of staff, was not able to get hold of Sue Gray, Sir Keir’s powerful chief of staff, to discuss it before election day.
Deputy PM ‘at heart of growth agenda’
But John McTernan, who was political secretary to Sir Tony Blair from 2005 to 2007, said that this should not pose a problem for her.
“Angela has got the position in the party with its own mandate and a position in the Cabinet of deputy prime minister,” he said.
“She has the relationships with the powerhouses at the centre of the operation – Keir, Rachel and Ed – and if you look at her department, she is at the heart of Labour’s growth agenda.”
The Telegraph understands that Ms Rayner is happy with her team of ministers and that she will still remain closely involved with the New Deal.
Meanwhile, a restructure at Labour’s campaign headquarters, which was meant to take place last week, has been delayed because David Evans, the party’s general secretary, has been unable to get the green light from Ms Gray.
“David was meant to be overseeing this but can’t start it as he hasn’t had a steer from Sue Gray about what the structure of Downing Street will look like,” one Labour source said. “He is blowing up because Sue Gray isn’t answering the phone to him.”
Party staff in limbo
While some staff have been offered plum jobs in either Downing Street or government departments, dozens of others are now left in limbo. Anyone hired on a general election contract is now officially working out their notice which was triggered on polling day.
A Labour source said: “Our incredible staff made history and delivered a Labour Government which has put politics back in the service of working people and is delivering change for this great country.
“Following the election, many members of the team have moved into government roles, meaning changes to the HQ operation. This will allow the party to support the Government on delivering its mission of national renewal.
“The restructure of the Downing Street operation has moved at pace. It would not be correct to say that this has caused frustration for senior personnel in the party.”
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