Keir Starmer has demoted Lisa Nandy as he carries out a reshuffle of his shadow cabinet.
The Labour leader replaced his former leadership rival as shadow levelling up secretary with Angela Rayner.
Nandy has been appointed shadow cabinet minister for international development, a far less influential frontbench role.
It is a dramatic fall from grace for the Wigan MP, who was shadow foreign secretary in Starmer’s first shadow cabinet.
A source close to Nandy said: “We’re proud of the work Lisa has done, spearheading some of our most exciting policy in housing and devolution.
“Lisa is a team player and looks forward to getting stuck into the new role.”
It is understood that Rayner will retain responsibility for workers’ rights in her new role, while also becoming shadow deputy prime minister.
A Labour source said: “Game, set and match to Angie.”
The reshuffle was kicked off by the resignation of shadow environment secretary Jim McMahon.
He has been replaced by Steve Reed, with Shabana Mahmood – a key Starmer ally – replacing him as shadow justice secretary.
A Labour source said: “This promotion is recognition of the integral role Shabana has played in transforming the Labour party as national campaign co-ordinator.”
Mahmood is being replaced in the campaign co-ordinator role by Pat McFadden, who is also becoming the shadow chancellor of the Duchy of Lancaster.