Gareth Thomas, MP for Harrow West, has lost his post as Parliamentary Under-Secretary of State in the Department for Business and Trade following the early September 2025 reshuffle triggered by Angela Rayner’s resignation.While reshuffles are routine in government, this one has drawn criticism from the Labour left, who argue it reflects Sir Keir Starmer’s determination to promote figures closer to the party’s centre ground. Groups such as Momentum say the shake-up reduces ideological diversity in government and sidelines MPs with more left-leaning perspectives.
At the same time, political analysts view the changes as part of a broader strategic shift. Starmer is seeking to move beyond Labour’s first year in office into a delivery phase, with a stronger emphasis on growth, productivity and reassuring business. Peter Kyle, the new Business Secretary, has been tasked with spearheading this pro-growth agenda, focusing on start-ups, scale-ups and attracting investment.
Within that framework, the small business brief has been rebranded as “small business and economic transformation.” Blair McDougall, a close ally of the leadership, replaces Thomas in the role—a change seen as signalling both a tightening of political control and a reweighting of priorities towards transformation and growth.