Keir Starmer tried and failed to strip Ed Miliband of his Net Zero brief in the reshuffle, it was claimed today.
The PM is said to have asked Mr Miliband to take over Angela Rayner‘s housing department as he reshaped his team on Friday.
However, Mr Miliband refused – insisting he wanted to keep overseeing the climate drive.
Sir Keir has pledged a new focus on growth as he tries to get the government back on track amid dire polls.
The premier looks to be tacking to the right with his appointments amid the mounting threat from Nigel Farage and Reform.
Insiders have acknowledged that the Net Zero drive has been holding back activity, while businesses are hoping that reforms to workers’ rights could be delayed or watered down.
New Work and Pensions Secretary Pat McFadden is also set to launch another bid to trim the spiralling benefits bill – after the last effort was humiliatingly killed off by Labour MPs.
Downing Street said the PM is ‘delighted’ that Mr Miliband will continue to lead the energy department, but did not deny Sir Keir had initially suggested moving him.
Keir Starmer has installed ‘Blairites’ in key jobs as he tries to revive his government with a new focus on growth
The PM completed his dramatic reshuffle last night, after the resignation of Angela Rayner caused chaos
Keir Starmer is said to have asked Ed Miliband to take over Angela Rayner’s housing department as he reshaped his team
Business Secretary Jonathan Reynolds has been replaced by Peter Kyle
Steve Reed was made housing secretary and has pledged to ‘build, baby build’, with allies describing him as ‘pumped’
Sir Keir’s official spokesman said: ‘The PM has set out his new Cabinet and ministerial team – a team that is going to be focused on delivery, with growth as a relentless focus.
‘The Energy Secretary has been central to that growth agenda. Investing in clean energy goes hand in hand with cutting peoples’ bills and boosting growth across the country.
‘You can see that with the investments being made into CCUS all across the country, into solar, into wind farms.
‘The PM is delighted he’ll continue to do that.’
Sir Keir is facing rising concern on his own benches about the government’s performance. Emily Thornberry – a potential deputy leader candidate – has warned that the PM must stop making ‘mistakes’.
But Labour’s Left is gearing up for battle over issues like the overhaul of strike rules and employment rights. Ms Rayner had championed the overhaul, but firms are hoping for a change in direction after her departure.
Business Secretary Jonathan Reynolds has also been shifted, along with the minister who was stewarding the changes.
Peter Kyle, who replaced Mr Reynolds, is heading for the US and China this week. He said: ‘From day one in the job I’ve been clear that my mission is to drive forward economic growth and to give businesses across the country the opportunities they need to thrive.’
ITV News said Mr Miliband was the PM’s ‘first choice’ to take over housing from Ms Rayner, but he declined.
A government source pointed to Michael Shanks becoming a joint business and energy minister as evidence of a rethink on the climate policy.
‘There’s a tension between Net Zero and driving growth, so you’re drawing them under one portfolio and saying business comes first,’ the source told The Times.
Another government insider said: ‘Keir has put reformers in key departments to tear down barriers and unleash the economy’s potential.’
Touring broadcast studios this morning, defence minister Luke Pollard denied the government is ‘rowing back’ on workers’ rights.
‘Any change that we put in will only be to strengthen workers’ rights, to make sure they can be implemented more effectively,’ he told Times Radio.
‘But we’re not rowing back on this. Let me be absolutely clear on this. The Prime Minister is committed to this huge increase, the biggest upgrade in workers’ rights for a generation.
‘It was in our manifesto. We’re passionate about doing so. And we know that when we do this, it will back those good employers that are already doing this at the moment, and it will target those bad employers that aren’t treating their workforces correctly.’
Unions are gathering for their annual conference this week with the Unite union threatening to axe funding for Labour.
In another flashpoint, the party’s ruling national executive is due to agree the rules for the deputy leader contest today.
Dame Emily said the PM’s first year in office had been a ‘mixed picture’ as she praised Sir Keir’s performance internationally, but suggested he was failing domestically.
‘It’s such a mixed picture, isn’t it. We’re doing so well internationally and our standing is so much higher; we’re back on the international scene,’ she said.
‘But domestically things just don’t seem to be working. There are things we’re doing which are fantastic, but nobody seems to know about it.
‘The highest wage growth, building some homes, actually investing in green energy.
Unions are gathering for their annual conference this week with the Unite union’s Sharon Graham (pictured) threatening to axe funding for Labour
‘All of these sort of things are brilliant achievements, nobody seems to be hearing about that – they hear about the mistakes.’
Dame Emily, the chair of the House of Commons’ foreign affairs committee, warned Labour ‘can’t afford’ to keep making mistakes due to the threat of Nigel Farage’s Reform UK.
‘We’ve gone from having a fantastic gift from the British public of a huge majority to now being at 20 per cent in the polls,’ she added.
