Ministerial reshuffles: MHCLG and DESNZ

Joint article written by Sophie Richardson and Becca Walker

As Andy Burnham settles in as Prime Minister, we bring you a summary of what ministerial changes are going on at the Ministry of Housing, Communities and Local Government (MHCLG) and the Department of Energy and Net Zero (DESNZ). Some ministerial briefs are yet to be finalised. 

DESNZ:  

Ed Miliband's move to the Foreign Office sparked speculation over who would take charge of the DESNZ. The appointment was seen as an early indication of how far Prime Minister Andy Burnham intends to maintain the government's existing approach to net zero, clean power and major renewable energy infrastructure. Miatta Fahnbulleh MP was the one to walk out of Downing Street as the new Secretary of State for Energy. 

At first glance, the appointment signals a certain level of continuity for DESNZ’s overall direction, particularly its commitment to Clean Power targets and renewable energy deployment. Previously, Fahnbulleh was a junior minister under Ed Miliband, as a DESNZ Minister for Energy Consumers. During this time, Fahnbulleh approved the Byers Gill Solar Farm on behalf of Ed Miliband, although it must be noted that this was reflective of the wider DESNZ position at the time. For promoters of renewable energy NSIPs, the key question will be whether the government maintains its recent pattern of approving large-scale solar projects. The upcoming Beacon Fen Energy Park decision in August is likely to be one of the first major indicators of whether any shift in emphasis is emerging. 

More widely, reducing household energy bills is expected to be one of the key focuses for the department, with a potentially greater emphasis on affordability than previously. This aligns with Fahnbulleh’s previous policy advancements during her time as Minister for Energy Consumers. 

Early reports have suggested the government could pursue a more pragmatic approach to existing North Sea oil and gas production while maintaining its opposition to issuing new exploration licences. 

Elsewhere in the ministerial team, there is considerable continuity, with Michael Shanks retaining his previous role as Minister for Energy. The status of Martin McCluskey MP as Minister for Energy Consumers is yet to be confirmed. Katie White OBE has been promoted from a climate-focused Parliamentary Under-Secretary role to Minister of State.

While there may be adjustments in emphasis, particularly around affordability and energy security, the composition of the ministerial team suggests broad continuity with the department's existing priorities. How this looks in practice remains to be seen. Over the next few months, we will be watching closely for any signs of departure from Miliband and how this affects NSIPs. 

MHCLG:  

Steve Reed MP was the first from Cabinet to resign on Monday and has been replaced by Angela Rayner MP. This will be her second go as the Secretary of State for Housing, Communities, and Local Government, having stepped down in September 2025 following a failure to pay stamp duty on one of her properties.  

Rayner's return to MHCLG is significant given her longstanding support for affordable housing, council housebuilding and greater tenant protections. Her appointment aligns with Burnham's emphasis on increasing the supply of council homes, a theme he highlighted in his first speech outside Downing Street. Rayner has also been a prominent advocate for English devolution, having helped develop the English Devolution White Paper and Bill during her previous time in government and recently stating her desire to put "rocket boosters" under the agenda. 

A statement in the Lords on changes to the Machinery of Government on Tuesday confirmed that local economic growth and devolution strategy would be moved from MHCLG to the new No 10 North. This calls into question the size of Rayner’s role in driving devolution and opens new questions about current ministerial briefs in the department, such as Nesil Caliskan MP, Minister for Devolution, Local Growth and Communities. 

Florence Eshalomi MP has been made a new Minister of State for the department with as yet undefined responsibilities. She previously chaired the Housing, Communities and Local Government Committee, meaning a new Labour Chair of the Committee will have to be appointed.  

She welcomed the commitment to end rough sleeping by Andy Burnham, noting that homelessness was a key issue for her select committee. She celebrated the return of Angela Rayner to MHCLG and the elevation of Matthew Pennycook’s role to attending Cabinet.  

As Committee Chair she recently questioned Steve Reed, a fellow former Lambeth Councillor, on potential delays to the Social and Affordable Housing Programme and oversaw reports that called on the government to move "further and faster" on leasehold reform, strengthen tenants' rights, and consider reforms to stamp duty. 

Matthew Pennycook MP remains as Minister for Housing and Planning, having held the post since July 2024. What’s changed is that he will attend Cabinet – symbolic of the importance Burnham is placing on parts of his brief including the Social and Affordable Homes Programme. His continued presence also provides continuity for the department as it progresses major reforms, including the delayed publication of the new National Planning Policy Framework and the government's response to scrutiny of the draft Leasehold and Commonhold Reform Bill. 

The status of other existing ministers remains unclear. Alison McGovern MP, Minister for Local Government and Homelessness; Samantha Dixon MP, Parliamentary Under-Secretary for Building Safety, Fire and Democracy; and Nesil Caliskan MP, Minister for Devolution, Local Growth and Communities, have not appeared on the latest list of ministerial appointments, leaving their future roles uncertain. 

Nesil Caliskan MP has held the devolution brief since May 2026, following Miattah Fahnbulleh’s resignation. Before entering Parliament, she served as Leader of Enfield Council and chaired Labour's representation within the Local Government Association. 

Bridget Phillipson MP has moved to MHCLG as Minister for Women and Equalities, following the transfer of the Office for Equality and Opportunity from the Cabinet Office. She was previously Secretary of State for Education. 

Overall, the reshuffle suggests broad continuity in MHCLG's housing agenda, with Pennycook remaining in post and Rayner returning to a department she previously led. However, machinery of government changes around devolution and local growth mean the precise balance of responsibilities within the department remains unclear. Watch out for further announcements on ministerial portfolios in the coming days.