Rishi Sunak has carried out a mini Cabinet reshuffle, creating four new government departments and appointing a new party chairman after Nadhim Zahawi was sacked for breaching the ministerial code.
The business, trade and culture departments have been restructured into four different ministries, with Downing Street claiming the shake-up will “ensure the right skills and teams are focused on the Prime Minister’s five promises”. Full details of the responsibilities of the new departments will be set out later on Tuesday, it added.
Mr Sunak has also replaced sacked Tory party chairman Mr Zahawi with Greg Hands, who had previously been trade minister. The prime minister sacked Mr Zahawi at the end of January for breaching the ministerial code over his tax affairs.
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Ministerial interests adviser Sir Laurie Magnus was appointed to look into Mr Zahawi's £4.8 million tax dispute with HMRC, which was settled while he was chancellor under Boris Johnson, and found a “serious failure” to meet the standards of the code.
Meanwhile, deputy PM Dominic Raab has survived the mini reshuffle. Mr Raab, who is also the justice secretary, is being investigated by senior lawyer Adam Tolley KC over bullying allegations – with dozens of officials thought to be involved in eight formal complaints.
Mr Raab has denied the bullying allegations and Mr Sunak has indicated he will wait for the outcome of the inquiry into his conduct before taking any action, despite calls for him to be sacked.
Here's a round up of the changes Mr Sunak has made to his Cabinet today.
Greg Hands - Conservative party chairman
The Tory party chairman is responsible for party administration and overseeing the party headquarters. Mr Zahawi took up the role in October 2022 when Mr Sunak became PM.
He has now been replaced by Mr Hands, who served as a trade minister under four different prime ministers.
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.”
Grant Shapps - Energy security and net zero secretary
Grant Shapps, the former business secretary who also had a brief stint as home secretary under Liz Truss, has been appointed to head up a new department for energy. Mr Shapps tweeted to say he is “delighted” to take on the role.
Mr Sunak had said during last summer's Conservative leadership campaign that he wanted to create a standalone energy department after the Tories decided to scrap the former Department of Energy in 2016. The government said the 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”.
Defending the restructure, Downing Street said that the issues of net zero and energy security are linked. Asked if the move would signal greater prioritisation of net zero, the PM’s official spokesman said: “I think the public will judge us by our actions and our continued approach on net zero. We do think it’s right to more clearly pull out the Government’s focus on that linkage to long-term energy security because the two very much go together."
They added: “Seeking to achieve net zero is, in part, obviously about the importance of keeping 1.5C alive, but equally, it’s about making sure we have energy security, whether that’s offshore wind or nuclear.”
Kemi Badenoch - Business and trade secretary
Kemi Badenoch, who was the international trade secretary, will now be responsible for business and trade as the head of a new joint department. The Department for Business and Trade will “support growth by backing British businesses at home and abroad, promoting investment and championing free trade”, the government said.
The creation of the new department makes sense, Downing Street said, adding that the two issues “naturally go together”. Mr Sunak's official spokesman said: “This is a recognition, I think that’s been put forward from a number of individuals, that business and trade naturally go together and that when you’re planning trade deals to benefit UK business it makes sense to link them together under one secretary of state so there’s a clearer lines of responsibility.”
Lucy Frazer - Culture secretary
The Department for Digital, Culture, Media and Sport has now been shorn of its responsibility for digital technology, and becomes the Department for Culture, Media and Sport. The new-look department 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”, the government said.
Lucy Frazer will head up the department - her first Cabinet role after previously serving as minister for housing and planning.
Michelle Donelan - Science, innovation and technology secretary
Michelle Donelan, who was the culture secretary, heads up a new department focused on science and technology.
The new Department for Science, Innovation and Technology will “drive the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy”, according to the government.
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