UK Prime Minister Keir Starmer has appointed former Prime Minister Gordon Brown as special envoy on global finance, a move aimed at bridging divisions within the Labour Party following dismal local election results. The announcement was made on Saturday, with Starmer's office stating that Brown will focus on developing new international finance partnerships to support defense and security-related investment, particularly strengthening ties with Europe.
Brown's Role and Objectives
Gordon Brown, who served as Labour chancellor and prime minister from 1997 to 2010, is tasked with establishing multilateral finance mechanisms. This initiative aligns with efforts by Chancellor Rachel Reeves, who has pursued similar goals with limited success recently. Brown's primary responsibility will be to rally support among allies for Reeves' finance initiative, which aims to drive joint procurement of munitions and accelerate defense investment. The mechanism is expected to be operational by 2027. So far, only Finland and the Netherlands have signed up, while Canada continues to lobby the UK to join its own similar initiative.
Political Context
The appointment comes as Starmer faces internal pressure after around 30 Labour MPs called for a timetable for his departure. Some have named Greater Manchester mayor Andy Burnham as a preferred successor. Former Deputy Prime Minister Angela Rayner and Health Secretary Wes Streeting were also considering leadership bids before the local elections. Streeting acknowledged the party's poor results, stating, "Across the country we've seen some extremely bad results for the Labour Party. We have to respect the voters, take the feedback on the chin and accept that the government nationally bears a huge amount of responsibility."
Other cabinet ministers, including Ed Miliband, Lisa Nandy, Shabana Mahmood, and Yvette Cooper, offered tepid support for Starmer. Miliband reportedly suggested in a private meeting that Starmer should consider an orderly transition of power. Starmer also appointed another Labour grandee, Harriet Harman, as his adviser on women and girls on the same day.
Reactions and Implications
While both Brown and Harman are highly respected within the Labour parliamentary party, critics argue that relying on the old guard may have limited impact. Some Labour MPs privately criticized the decision to the BBC. The appointments are seen as an attempt to stave off a leadership challenge, as party grandees have historically played pivotal roles in ousting and electing leaders. Brown has already been influential in pushing the government to introduce measures to alleviate child poverty.
On the economic front, Reeves hopes that Brown's involvement will help plug a defense funding gap without increasing borrowing, by taking defense spending outside her fiscal rules—an approach both Brown and Burnham have suggested. Reeves remains opposed to this, according to sources. Brown will also help re-launch negotiations to join the European Union's SAFE weapons fund, which the EU effectively blocked Britain from joining last year due to a steep access fee.
