The Department for Business, Energy and Industrial Strategy (BEIS) is to be broken up into four new departments, the prime minister has announced.
According to 10 Downing Street, the changes will ensure the government has the right skills and teams in place to focus on Rishi Sunak’s five promises: “to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats”.
Sunak said: “The government needs to reflect the priorities of the British people and be designed to deliver for them. These changes will focus teams on the issues that will build a better future for our children and grandchildren.”
The new departments will include:
- a Department for Science, Innovation and Technology, tasked with driving innovation that will create new and better paid jobs
- a Department for Energy Security and Net Zero, which will focus on securing long-term energy supplies and reducing bills
- a Department for Business and Trade, which will champion free trade and promote investment; and
- a refocused Department for Culture, Media and Sport, which will help develop the UK as a global leader in the creative arts.
It is not yet known when the changes will take place.
Unions representing civil servants have been critical of the plans, including the FDA which claimed previous department reshuffles caused issues for employees.
Dave Penman, general secretary of the FDA, said: “The Foreign, Commonwealth and Development Office was created nearly three years ago, and we are still waiting for all the pay consequences for staff to be resolved. Yet, the government has announced the creation of four new departments, merging and breaking up three existing ones.
“Machinery of government changes are simply a distraction and are no replacement for clear policy objectives. This reorganisation is not just a change to the letterhead on departmental notepaper but will drain vital resources. The four new departments will need to integrate pay structures, IT systems and back office functions – occupying valuable productive capacity of an already overstretched civil service.”
The Public and Commercial Services Union (PCS) said: “At a time when our members are already overworked, this reshuffle creates unnecessary, additional work at a cost to the taxpayer with no clear benefit.
“The change, and the uncertainty it brings, will also add to the anxiety of many members already struggling to cope with a cost-of-living crisis.
“The government’s focus should be on resolving our dispute rather than wasting money on a restructure.”
Just saying…@RishiSunak should be fully focussed on resolving our dispute, not rearranging the deckchairs on the Titanic
@pcs_union #reshuffle #pcsonstrike #blamethegovt— PCS Union (@pcs_union) February 7, 2023
Sunak has also appointed new ministers to lead each department: Grant Shapps is now secretary of state for energy security and net zero, leaving his position as business secretary; Kemi Badenoch becomes secretary for business and trade, and will remain minister for women and equalities; Michelle Donelan will be the new science, innovation and technology secretary; and Lucy Frazer has become secretary for culture, media and sport.
Skills development should be a key focus for the new Department of Science, Innovation and Technology, said Yogan Patel, head of life sciences at accountancy group MHA.
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He said: “UK science and technology firms, both start-ups and more mature companies face critical skills shortages. It has already been identified that there will be a shortfall of around 130,000 people in the life sciences sector by 2030. So unlocking more training and education in STEM areas must be a high priority for the new science, innovation and technology secretary.”
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