The resignation of U.K. Deputy Prime Minister Angela Rayner after a tax scandal has triggered a major cabinet reshuffle by Prime Minister Keir Starmer. CNBC's Ritika Gupta looks at what it means for the Labour Party's political standing and public trust in the PM.

London

Prime Minister Keir Starmer has implemented a significant cabinet reshuffle in the UK following the resignation of Deputy Prime Minister Angela Rayner due to a tax scandal involving a second home. The reshuffle was larger than initially planned, with David Lammy appointed as Deputy Prime Minister, Yvette Cooper as Foreign Secretary, and Shabana Mahmood taking over at the Home Office, while Rachel Reeves retained her role as Chancellor of the Exchequer.

The changes are seen as an attempt to address economic growth and immigration, two major challenges facing the government. The reshuffle has raised questions about the direction of the Labour Party and Starmer's leadership, especially as the party's ratings have declined and with important events such as the annual party conference and the autumn budget approaching.

Next weeks may be 'make or break' for Starmer after cabinet reshuffle

We have already discussed France, Japan, but there is also political change happening here in the UK, where the Deputy Prime Minister, Angela Rayner, has resigned after a tax scandal on a second home purchased earlier this year. Rayner's resignation triggered a major cabinet reshuffle by the Prime Minister, Keir Starmer. As always, Ritika is joining us with all of the details. Ritika, what is different about this reshuffle? Well, we were just talking before we got on air there about how there was a planned shuffle at the start of the week last week, and then we ended the week with an unplanned shuffle. And particularly what was interesting about this unplanned reshuffle, the second in the space of a week, was it was much bigger than it actually needed to be. Starmer took the opportunity to actually sack two other ministers. He made David Lammy his Deputy Prime Minister, Yvette Cooper's role as Foreign Secretary, and then Shabana Mahmood has taken over Yvette's role at the Home Office. But what was really important to note is that Rachel Reeves, the Chancellor of the Exchequer, did actually keep her role. They clearly want to avoid any further turmoil when it comes to the market. But these changes are there to really focus in on their two key challenges, one of that's economic growth, as we know, as well as immigration. In terms of what it means for Keir Starmer's leadership, confidence, what signals actually a lack of confidence, if you think about it, if you're doing all these changes with people in different jobs, did you even have the right people in the jobs in the first place? And then secondly, it also raises questions about the political stance of the government as well. We've noticed when Keir Starmer does these reshuffles, they tend to get more of the right of the party, the Blairites. They seem to be coming forward to the table. That's sort of what we saw happening here. And then the further indications of what that could mean for policy. Does that mean we get more growth policies? Does that mean we get more deregulation or more hardline approach to immigration as well? The Prime Minister said that this was the cabinet to deliver, that this is the moment to start taking concrete actions. From the announcements, is it clear that actually action and change is coming from this Labour government? I think that's the big question, really, is whether these changes actually will turn the ship around for the Labour Party, because we've seen Keir Starmer's ratings have plummeted. We've seen the Labour Party's ratings have plummeted as well. And this isn't a key moment for them. If you think about it, they've got the Labour Party annual conference coming up this month, and they're going to have the autumn budget. So these few months, many are seeing us quite make it or break it for the government. And you also have Angela Rayner's loss. That was a big loss for the Labour Party, because she really does speak to and attract a lot of the traditional Labour voters. So it does just seem like a very chaotic moment right now for the government. And of course, you're highlighting the political party conferences happening very, very soon. So let's see what will be the narrative around those key events as well, Ritika.

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Jerusalem

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Washington

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Tel Aviv-Yafo

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Culiacán

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New York

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Tunis

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Brasilia

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