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Baroness Poppy Gustafsson, Keir Starmer’s investment minister, is reportedly set to quit less than a year after her controversial appointment to the House of Lords, dealing a blow to the Prime Minister’s economic goals.
Tasked with leading the Office for Investment to make the UK a top destination for business, Gustafsson, founder of the £4 billion tech firm Darktrace, brought significant business expertise.
Her departure, reported by Sky News, comes amid Labour’s struggles with wealth creators and rising taxes, prompting Tory shadow Business Secretary Andrew Griffith to criticize the government’s appeal to investors.
Starmer had praised Gustafsson’s entrepreneurial experience, but her exit fuels concerns about economic stability, especially with a looming budget deficit.
The resignation coincides with uncertainty over Angela Rayner’s future, as Starmer delays a planned ministerial reshuffle.
Griffith likened selling Labour’s vision to investors to an impossible task, highlighting an exodus of international investors.
The government has not commented, but Gustafsson’s departure underscores challenges in maintaining confidence in Labour’s economic strategy as Starmer navigates a turbulent political landscape.