The UK's new prime minister is cleaning house, and one of the biggest names in economic policy is out.
The news hit the wires at 3:10 PM EDT on August 12, 2026.
Shafik's time in the role did not last long. Keir Starmer, the former prime minister, chose her for the job last year.
A Downing Street spokesperson wouldn't discuss internal staffing choices, and Shafik didn't reply to a comment request made through LinkedIn.
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She also came to the job after a rough stretch at Columbia University in New York, where she resigned as president following criticism from both pro-Israel and pro-Palestinian groups over her handling of campus demonstrations related to the Gaza war.
Shafik's exit is not happening in a vacuum. It is part of a broader shift under Burnham, who has made clear he wants the state to control a bigger share of the economy.
Burnham chose John Healey for the Chancellor of the Exchequer role, the top finance job in the country. He has not yet made a formal announcement about his full team of economic advisors in Downing Street, but he did take advice while preparing for office from a short list of heavy hitters. That group included Jim O'Neill, a former Goldman Sachs economist; Andy Haldane, a former Bank of England chief economist; and Richard Hughes, who previously chaired the Office for Budget Responsibility.
One familiar face is sticking around. Neil Amin-Smith, who advised former chancellor Rachel Reeves at the Treasury and chaired her council of economic advisors, has joined Burnham's Downing Street team. So while the top spot is changing, at least one thread connects the old government to the new one.
When Shafik was first named to her role, Downing Street said she would bring extra expertise to help the government speed up economic growth and improve living standards across the country. That goal has not changed, but the person leading it now has.
A change in economic advisors might sound like inside baseball, but it matters for anyone with money in the UK or invested in British markets. The people whispering in the prime minister's ear help shape decisions on taxes, spending, and regulation, and those decisions move markets.
Burnham's picks so far point toward a government that wants a more active hand in the economy. That can mean different things for different investors. Bigger state involvement often brings higher spending in some areas and tighter rules in others.
The fact that Burnham is still putting his team together, rather than rushing out a full slate, suggests he is taking his time to get this right. That is worth watching. The next few names he announces will tell you a lot about where the UK economy is headed, and that could have a real effect on your portfolio.
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