In a major shift in the machinery of Government, the Cabinet re-shuffle has resulted in the relatively recently formed Department for Business, Enterprise and Regulatory Reform – and the Department for Innovation, Universities and Skills being combined into a new Department for Business, Innovation and Skills.  

According to Downing Street, the role of the new Department is to build Britain’s capabilities to compete in the global economy – to do this, and create the jobs of the future Britain requires a regulatory environment that will encourage enterprise, skilled people, innovation and world-class science and research – hence the rationale for bringing together the 2 Departments in government which have the key expertise in these areas.

The change means that adult skills (post 19), the higher and further education systems all now come under Lord Mandelson – who heads up the new combined Department with 10 Ministers beneath him.

John Denham, who was Secretary of State at DIUS, has moved to the same role at the Department for Communities and Local Government – replacing Hazel Blears who also resigned last week.