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Birmingham Post
Birmingham Post
Business
David Hughes, Sophie Wingate and Dominic McGrath, PA Political Staff & Hannah Finch

Rishi Sunak breaks up Department for Business, Energy and Industrial Strategy in major restructure

The Government departments responsible for business, trade and culture have undergone a major restructure in a sweeping shake-up of Whitehall by Rishi Sunak.

The Department for Business, Energy and Industrial Strategy (BEIS) has been broken up as part of the creation of four new Government departments aimed at boosting economic growth and addressing the energy crisis.

Sacked Tory party chairman Nadhim Zahawi has been replaced with Greg Hands, who had been trade minister.

Grant Shapps, who had been business secretary, will now be the Energy Security and Net Zero Secretary.

Kemi Badenoch, who was international trade secretary, will now lead the joint Department for Business and Trade.

Lucy Frazer joins the Cabinet as Culture Secretary in a department which has been shorn of its responsibility for digital technology, but will instead focus on the creative arts and sport.

Michelle Donelan moves from culture to the new Department for Science, Innovation and Technology.

Downing Street said that the creation of four new departments would “ensure the right skills and teams are focused on the Prime Minister’s five promises”.

In January, Mr Sunak outlined five pledges during his tenure - to half inflation, grow the economy, cut national debt, reduce NHS waiting list times and pass laws to prevent small migrant boats crossing the English Channel.

Marco Forgione, Director General of the Institute of Export & International Trade, said the merger of parts of BEIS with the DIT is an opportunity to better integrate exports within the wider UK growth strategy.

He said: "There needs to be a focus on doing what is best to stimulate growth in the economy through international trade. This is because businesses that trade internationally have been proven to grow quicker and become more profitable.

"We’ve previously called for there to be a cross-departmental taskforce focused on driving UK exports, particularly among MSMEs (micro, small and medium enterprises), as well as a minister dedicated to maximising the opportunities of an independent, digital-first border strategy. This merger should be the opportunity to set these wheels in motion. "

A new Department for Energy Security and Net Zero will be tasked with securing the UK’s long-term energy supply, as well as “bringing down bills and halving inflation”.

A new Department for Science, Innovation and Technology meanwhile will “drive the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy”.

The Department for Business and Trade will “support growth by backing British businesses at home and abroad, promoting investment and championing free trade”, while the new-look Department for Culture, Media and Sport will “recognise the importance of these industries to our economy and build on the UK’s position as a global leader in the creative arts”.

Mr Hands said he is “excited” to get started in his new role.

He tweeted: “I joined the Party in 1986 – a ward chairman in 1992, a councillor in 1998, a Group Leader in 1999, an MP in 2005, a Minister in 2011 – an honour to chair it in 2023!

“The work starts right away.”

Meanwhile, Mr Shapps tweeted to say he is “delighted” to head up the new department.

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