The political director to Chancellor Rachel Reeves will step down next week following what has been described as a mutual agreement with the Treasury chief.
Matt Pound is due to leave his role after the spring statement, according to Labour sources familiar with the arrangement, Politico has reported.
His departure comes shortly after Morgan McSweeney exited Government earlier this month, marking another high-profile change within Labour’s senior ranks.
Mr Pound worked closely with Mr McSweeney during the party’s years in opposition, particularly on internal restructuring and candidate selections ahead of the 2024 general election.
The political director to Chancellor Rachel Reeves will step down next week
|GETTY
Before entering Government, Mr Pound served as an organiser for Labour First, a group aligned with the party’s right.
He also played a role in Keir Starmer’s successful Labour leadership campaign in 2019.
Following Labour’s return to power, Mr Pound initially became political secretary to the Chancellor.
He was promoted last summer to political director, strengthening his position within Ms Reeves’ team at the Treasury.
In a statement, Mr Pound reflected on Labour’s recent electoral trajectory.
He said: "We have come a long way to turn the Labour party around from electoral oblivion in 2019 to a historic general election victory just five years later, and it is a privilege to have been a part of that."
Rachel Reeves paid tribute to her departing adviser.
She said his contribution "in transforming the Labour party and securing a historic general election win was nothing short of pivotal."
Ms Reeves also said that after inheriting what she described as a "£22billion Conservative black hole", Mr Pound had been central to efforts to stabilise the public finances.
A fellow special adviser described him as "one of the most talented operators in Westminster".
His departure creates another senior vacancy within Labour’s political operation at a time of ongoing internal adjustments.
Mr McSweeney’s exit earlier this month followed political fallout linked to Peter Mandelson, although the circumstances surrounding both departures have not been formally connected.
Mr Pound’s decision to step down comes after a period that has included internal disagreements over welfare policy and other legislative issues.
Labour sources said the timing of his exit had been structured to follow the Chancellor’s spring statement, ensuring continuity during a key fiscal moment.
Despite this, she has refuted claims of major a fiscal overhaul, rather characterising the upcoming announcement as more of a "projection" for the upcoming year.
Asked whether student loan reforms could be announced at the spring statement on March 3, the Chancellor said the event was “just a forecast” and not a fiscal moment, stressing that the Government has committed to one budget a year.
Matt Pound is set to step down
|BBC
The upcoming resignation follows Catherine Howard, a lawyer brought in to overhaul the rules governing development and building, who left the team at the start of the year.
She was understood to have advised the Chancellor not to immediately push through radical planning reforms.
At the time, Ms Howard said: “Over the past four months I have thoroughly enjoyed my time as the Chancellor’s infrastructure and planning adviser, and in my time have had the ability to advise HM Treasury and help steer the important steps the Government is taking to improve the planning system to support economic growth.
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