Sir Mel had served as shadow chancellor since 2024
Andrew Griffith has replaced Sir Mel Stride as shadow chancellor as part of Conservative leader Kemi Badenoch's reshuffle of her top team.
Claire Coutinho, previously the shadow energy secretary, after her maternity leave will replace Griffith as shadow business secretary and act as his deputy in the ongoing shake-up.
Badenoch is forming a new shadow cabinet before the party's conference in October.
Dame Priti Patel has also been replaced as shadow foreign secretary by Tom Tugendhat.
Badenoch paid tribute to Sir Mel's work as shadow chancellor saying he helped the party rebuild economic credibility and become an effective opposition.
A senior Conservative source said: "Kemi is changing the way the Conservative Party approaches economic policy and creating a new economic leadership team for the next phase, focused on growth, higher living standards and fiscal credibility."
Sir Mel, who was appointed to the role following Badenoch's leadership election in 2024, described his time in the senior Tory role as a "great honour".
"I am now looking forward to continuing to make a real contribution to the Conservative team in Parliament and beyond, to build and amplify our vision for Britain, from the back benches."
New shadow chancellor Griffith said the Tories will deliver "an economic revolution" with lower taxes, Britain drilling again to bring energy costs down, slashing red tape and Labour's Employment Rights Act.
"The Conservatives will always back the risk-takers and wealth creators who deliver growth, investment and jobs," he said.
A senior Conservative source described Griffith as a "no-nonsense, pro-growth shadow chancellor with real business experience".
Before he became MP for Arundel and South Downs in 2019, he served as a top executive at Sky and as chairman of Just Eat.
As Treasury minister Griffiths defended Liz Truss' 2022 mini-budget. He also served as City minister responsible for financial services policy.
Liberal Democrat Treasury spokesperson Daisy Cooper said: "Griffith helped deliver the Truss mini-budget that sent mortgages soaring and the economy into turmoil.
