Rishi’s reshuffle to reboot Whitehall

By Matilda Hartwig

Today, Rishi Sunak announced a mini re-shuffle as part of a rewiring of Whitehall. The changes establish four dedicated departments aimed at helping the government “deliver for the British people”.

No. 10 said, "The changes will ensure the right skills and teams are focussed on the Prime Minister’s five promises: to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats."

Below, we take a look at how this new governmental focus will help support business and the UK’s growth agenda.

Department for Energy Security and Net Zero

A dedicated energy department has been established to provide stronger focus on the UK’s energy security and transition to net-zero, in recognition of the fact that there hasn’t been enough “forward planning” in the past. The department has been tasked with establishing a long-term plan to secure our energy supply, bring down bills and halve inflation.

This is perhaps not the biggest surprise, given Sunak made a pledge to create a separate energy department during his unsuccessful campaign to replace Boris Johnson as Prime Minister.

While Chancellor, he was often frustrated with the lack of focus in BEIS, given its competing priorities. This move will hopefully provide some clear direction for the industry after a period of uncertainty, especially for investment into renewable energy.

The former Secretary of State for BEIS, Grant Shapps, has been appointed as the new Energy Security and Net Zero Secretary, which will provide a sense of continuity.

Department for Business and Trade

Kemi Badenoch will see her department expand, taking on domestic business regulation and support. This move aligns the trade and business portfolios which will help “support growth by backing British businesses at home and abroad, promoting investment and championing free trade".

After several months of backlash sparked by the Australia and New Zealand FTAs, Sunak may be looking to prove to UK businesses that he is on their side. This also supports the Secretary of State’s vision to move beyond just being a department for free trade deals, and one that supports inward investment and British exporters.

Department for Science, Innovation and Technology

While the establishment of a dedicated science and innovation department seems like a step change from his initial five promises as Prime Minister, Rishi Sunak has always supported investment in this area. As Chancellor, he was determined to increase spending on research and development to £22 billion a year, despite tough spending decisions elsewhere. Further, during the summer leadership campaign, Sunak championed science and innovation and promised to make Britain a “science and technology superpower”. No. 10 says that this new department "will drive the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy".

Michelle Donelan, the former culture secretary, will take on the role of Secretary of State for Science, Innovation and Technology.

Department for Culture, Media, and Sport

Lucy Frazer, a former levelling up minister, is moving to head up the slimmed down Department for Culture, Media and Sport. The most dramatic change to this portfolio is the loss of “digital” to its name. This responsibility has followed Donelan and now sits under the Department of Science, Innovation and Technology.

Labour sources have pointed out that Lucy Frazer's promotion to Cabinet means there will be a new housing minister. If true, this will be the 15^th new housing minister since the Conservatives came to power in 2010, and the fifth in eight months. While we don’t expect this to have much impact on the department, given that Michael Gove remains in place as Secretary of State. However, it is worth remembering that he too has experienced the revolving door of this department.