HM Treasury has replaced one of its most senior officials, following their departure to become Keir Starmer’s principal private secretary.
William Macfarlane has been appointed as the Treasury’s new director general, tax and welfare, replacing Dan York-Smith, who joined No.10 earlier this week.
Macfarlane rejoins HMT after five months at the Department for Culture, Media and Sport as DG for strategy and major events, the Treasury has confirmed to CSW.
Before joining DCMS, Macfarlane had been director of strategy, planning and budget at the Treasury for around two years from 2023.
The long-time civil servant has held a series of roles at departments including No.10 and the Foreign, Commonwealth and Development Office, including deputy ambassador, UK Mission to the EU; and director and deputy principal private secretary to the prime minister at No.10.
He spent 10 years at the Treasury at the start of his career, rising from policy adviser to deputy director.
In his new role, he will be responsible for tax and welfare policy and spending, including playing a key role in coordinating fiscal events such as autumn budgets and spending reviews.
His predecessor, York-Smith, has joined No.10 as Starmer’s PPS as part of a post-summer recess shakeup which has seen moves including: Nin Pandit going from being the PM’s PPS to a policy role; former Department for International Development permanent secretary Minouche Shafik being appointed as Starmer’s chief economic adviser; and chief secretary to the Treasury Darren Jones moving next door to No.10 to take on a new ministerial position created just for him.
Jones’ departure also led to a mini-reshuffle of HMT's ministerial team, with James Murray being promoted from his role as exchequer secretary to the Treasury to replace Jones, and 2024-intake MP Daniel Tomlinson becoming exchequer secretary to the Treasury, his first ministerial role.
The chancellor, Rachel Reeves, has also appointed a new growth adviser this week – John Van Reenen – who previously worked as chair of the chancellor’s Council of Economic Advisers.