Andrew Griffith has been appointed the new shadow chancellor, replacing Sir Mel Stride in a Conservative Party reshuffle completed ahead of parliament's return on Tuesday.

Griffith, previously the shadow business secretary, will now lead on economic policy for the Tories and head up a new Conservative Economics Unit. According to a source, Kemi Badenoch's decision to remove Stride formed part of an effort to change the party's approach to growth, living standards and credibility. Griffith previously served as City minister, giving him direct experience of the financial services brief at the heart of the shadow chancellor's portfolio, and his elevation signals the emphasis Badenoch is placing on economic credibility as the party seeks to close the gap with Reform UK.

The Tory leader also moved Claire Coutinho from her shadow energy secretary brief to business, where she will act as Griffith's "deputy across the economic brief".

The reshuffle drew praise from senior business figures, including AJ Bell founder Andy Bell and Luke Johnson, founder of Gail's. Johnson described Griffith as "eminently qualified" to serve as shadow chancellor, while Bell said Griffith had been "effective as City minister in diagnosing the regulation and risk aversion that is holding the economy back".

A Conservative source acknowledged that Stride had brought "seriousness and stability" but stressed that Griffith has "an incredibly impressive financial and business background" as the former chief operating officer at Sky. Griffith is the only sitting MP to have held a leadership position at a FTSE100 company.

Julia Lopez, the former shadow technology secretary, will cover for Coutinho during her maternity leave until the end of the year. Richard Fuller will remain as shadow chief secretary to the Treasury.

"Andrew and Kemi are in complete lockstep on how we back business, bring down taxes and regulation and get Britain working again," the figure added.

Stride said it had been an "honour" to serve in Badenoch's shadow cabinet.

Reform UK economics spokesman Robert Jenrick was sharply critical, saying: "The Tories have just brought back Boris Johnson's 'Net Zero Business Champion' who co-authored Liz Truss's mini-budget. They haven't changed and still aren't sorry for the damage they inflicted on our country. The Tories just cannot be trusted to cut handouts to illegal migrants, end mad net zero subsidies or to slash the ballooning benefits bill."

Griffith and Tugendhat promoted

Earlier on Monday, it was announced that Tom Tugendhat had received a promotion to the Conservative front bench. The former security minister was appointed to Badenoch's top team as shadow foreign secretary.

The move means former Home Secretary Priti Patel will be demoted as she takes on an "international role" building alliances between the Conservatives and other centre-right parties around the world. Patel also said the new role would give her "greater freedom" to represent her Witham constituency.

Badenoch said Patel had been "exceptionally loyal, hard-working and supportive during a very difficult period for the party".

A source close to Badenoch said Tugendhat was given the "good news" while he was speaking to Taiwanese officials about threats posed by China.

The former security minister has long been a staunch critic of the governments of Russia, Iran and China, and served as security minister in the Conservative government between 2022 and 2024. His appointment to the foreign affairs brief comes as defence and security issues feature prominently in UK political debate, and places one of the party's most prominent hawks on Beijing and Moscow at the heart of the Conservatives' international positioning.

In an opinion article for City AM in October, he argued that a parliamentary spy scandal involving the failed prosecution of Chris Cash and Christopher Berry showed that the government's "evident fear of annoying Beijing shows we have reached the point where Whitehall believes Britain cannot sustain its own economy or defend its own interests without outside help".

In his most recent Substack newsletter, published just days ago, he wrote of the UK's weak response to Russian provocation and lack of preparedness: "A few weeks ago a rust-bucket of a Russian warship tested its guns off our coast. In international waters, sure, but still a threat if ever I've seen one. And what did we do? We watched. No wonder Putin's feeling cocky with us and his former deputy foreign minister Andrei Fedorov has threatened a military response to our support for Ukraine. They see us as a soft target."

Reshuffle underway

The shadow cabinet reshuffle was triggered by James Cleverly's resignation on Saturday night, when he announced his intention to stand as a candidate for London mayor. Cleverly, who was the shadow housing and communities secretary, will still have to win the Conservatives' nomination in London. Katie Lam, who has been outspoken on economic and immigration issues since first entering Westminster in 2024, has replaced him.

Rebecca Paul has also replaced Nigel Huddleston as shadow culture secretary. It was further revealed on Monday that Stuart Andrew, the shadow health secretary, would leave his post.

The change of guard on the opposition frontbench marks an effort by Badenoch to boost public support. Some political strategists have predicted that Andy Burnham could call an election within months in a bid to shore up his political mandate, a timetable that gives the reshaped frontbench limited time to establish itself with voters before a potential nationwide contest.

It was reported over the weekend that Badenoch has written to the Cabinet Secretary, Antonia Romeo, to secure early access talks with Whitehall ahead of a potential vote. Opposition leaders are normally able to speak to government officials about 12 months before an election is due.

City AM / Freshwater Strategy polling shows the Conservatives level with the Labour Party on 23 per cent of the voter share, compared to 26 per cent for Reform UK. Kemi Badenoch is one of the most popular politicians with a net approval rating of four, compared to -20 for Nigel Farage, while Burnham stands at 12.