Liam Byrne faces losing responsibility for the Labour policy review. Photograph: Leon Neal/AFP/Getty Images
Ed Miliband has been discussing whether to conduct a shadow cabinet reshuffle that would strip Liam Byrne of responsibility for the party's policy review. It is understood that Byrne, the shadow work and pensions secretary, is resisting the move and no decisions have been made. The limited reshuffle could occur as early as Monday.
Under plans being considered by Miliband, Byrne may also lose the work and pensions brief and could even be ditched from the shadow cabinet. Miliband has already told the shadow cabinet he is rethinking the way the policy review is conducted.
Byrne is seen as a Blairite, and there have been tensions in the party about how tough a line to take on welfare. Labour supported a regional welfare cap after it opposed a blanket national welfare cap. It has also supported introducing a duty to work for people who have been claiming unemployment benefits for a year.
Byrne, one of the more energetic and intellectual minds on the frontbench, has also been pushing Labour towards support for a return to the contributory principle in welfare. But there have been difficulties between Byrne and parts of the leader's office over consulting on major policy announcements, including ensuring Labour MPs are told in advance about key policy changes.
Byrne in turn has been frustrated at times by some decision-making structures in the leader's office, although recent restructuring of the leader's office has eased problems.
A Labour spokesman said the party did not comment on reshuffle speculation.
It had been expected Byrne would stand down as MP for Birmingham Hodge Hill if he was nominated as the Labour candidate for Birmingham mayor. But the city's voters rejected the concept of mayor in a referendum on 3 May, leaving Byrne free to remain active in the shadow cabinet.
Some of Miliband's advisers believe he should be removed from overhauling party policy. It is also understood the Labour leader has told the shadow cabinet he does not want a full two-year policy programme completed at this stage.
Byrne, with the agreement of Miliband, had set up a series of policy reviews and commissions with the intention of the policies being published this autumn or the following year in time for the party conference. In recent years Labour has prepared lengthy documents that then get amended and voted on by party conference, and by the party's elected national policy forum.
Byrne is expecting to publish five or so brief policy items from the shadow cabinet before the policy forum next month.
It has been agreed that with the election still three years away, publication of a long list of policies at this stage of the parliament would be politically unwise. The shadow cabinet has instead been briefed to produce signature policies that create a buzz around Labour.
An example cited was a visit to Denmark and Norway by Byrne and the shadow education secretary, Stephen Twigg, where they looked at free childcare for the poor, leading to a front page piece in the Observer.
It has been acknowledged that the policy review process has been unwieldy, and has not been going along at a uniform pace. But the disagreements may also reflect tensions between those that believe it is unwise for the party to come up with any detailed policy at this stage, and those who believe it is only through the discussion of specific policies that the party will renew itself.
Shadow cabinet sources also acknowledge that the existence of a five-year fixed term parliament changes the pace of opposition, since it is not credible to argue that the party is at this stage on the verge of power. That in turn puts less pressure on the party from the media to set out detailed policies.
Miliband at recent question and answer sessions has said he believes that one route to re-engagement with politics is not to over-promise.
One shadow cabinet member said: "There would be concern in the shadow cabinet if Liam were to lose any of his responsibilities. He is one of the most intellectually subtle and thoughtful politicians in the party."
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