No 10 confirms five new appointments, with Lucy Frazer promoted to culture secretary and Greg Hands to Tory chair
Downing Street has confirmed five appointments.
Grant Shapps will be the new secretary of state for energy security and net zero. He was business secretary.
Michelle Donelan will be the new secretary of state for science, innovation and technology. She was culture secretary.
Kemi Badenoch will be the new secretary of state for business and trade. She was international trade secretary, but she will retain the “president of the board of trade” title she currently has (although it is little used) and she will remain minister for women and equalities.
Lucy Frazer is the new secretary for culture, media and sport. She was a levelling up minister.
Greg Hands is the new Conservative party chair. He was an international trade secretary.
Frazer and Hands are both being promoted to cabinet-level jobs. The other three were already cabinet ministers.
Key events
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Hunt and Reeves clash over Labour’s claim BP’s £23bn profits show need for more extensive windfall tax
Jeremy Hunt, the chancellor, and Rachel Reeves, his Labour shadow, clashed at Treasury questions over the announcement today from BP that its annual profits more than doubled to $28bn (£23bn) in 2022.
Reeves said this showed why the scope of the windfall tax should be extended. She said:
Last week Shell announced profits of £32bn, the highest in their 115-year history. Today BP announced profits £23bn, the highest in their history. Meanwhile in April energy bills for households are going to go up by £500.
The cost-of-living crisis is far from over, so will the government follow our lead and have a proper windfall tax to keep people’s energy bills down?
In response, Hunt said the government’s current windfall was raising more money than what Labour was proposing in the autumn.
Reeves than accused Hunt of protecting the oil companies. She said:
There we go again the government shielding the energy companies and asking ordinary families and businesses to pay more. Shell has spent more on share buybacks than they’ve invested in renewables.
Last year BP’s dividends and share buybacks were 14 times higher than investment in low carbon energy, so the government are allowing energy companies to make profits that are the windfalls of war whilst ordinary families and business pay the price. Isn’t it the case that Tories can’t solve the cost-of-living crisis because they are the cost-of-living crisis?
Hunt replied:
No and the total tax take from that sector is £80bn over five years which is more than the entire cost of funding the police force.
Now she can play politics but we will be responsible because we want lower bills, more investment in transition and more money for public services like the police.
Damian Carrington
Nick Turton, external affairs director at the Energy Institute, was part of the team that set up the previous Department of Energy and Climate Change in 2008. He says the new version will have to show that it has real clout around the cabinet table to be effective. He says:
Energy security and net zero is the right mandate for our times. The big question is whether this is simply moving deckchairs around or putting real clout where it’s needed.
At its inception, DECC was insurgent and, under its various Secretaries of State [including LibDem ministers during the 2010-2015 coalition], managed to use its political capital to challenge colleagues around the cabinet table.
Success for the new department in terms of energy security and the transition to net zero will be heavily dependent on decisions taken elsewhere in Whitehall. It needs to wield influence over Treasury spending, planning and building policy, farming and land use – and of course back into trade and industry policy.
At the Downing Street lobby briefing the PM’s spokesperson said he did not “recognise” the Lib Dem claim that the Whitehall reorganisation would cost at least £60m. (See 11.43am.) The spokesperson said:
It’s worth stressing obviously the teams are already in place.
This is about bringing together teams under the priorities of the prime minister. So we wouldn’t expect there to be significant additional costs to this.
George Osborne, the former Tory chancellor, is pleased about Greg Hands’ promotion.
Great to see @GregHands as the new Tory Party Chairman. General rule: useless Tory PMs have demoted Greg and effective Tory PMs have promoted him.
— George Osborne (@George_Osborne) February 7, 2023
At the lobby briefing the PM’s spokesperson did not deny reports that Michael Gove was originally lined up to be the new science secretary. (See 11.50am.) Asked about the story, the spokesperson said he would not comment on what might have been considered.
At the Downing Street lobby briefing the PM’s spokesperson said combining the business and international trade departments made sense because they “naturally go together”. He told journalists:
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.
Sebastian Payne, the former FT journalist who now runs Onward, a conservative thinktank, agrees.
#1: Merging the Department for International Trade with Business makes a lot of strategic sense – it’s an idea that’s been kicking around since Boris Johnson’s days in No10.
Both departments should be wholly focused on growth and trade deals that can help achieve it.
— Sebastian Payne (@SebastianEPayne) February 7, 2023
Rishi Sunak is certainly thinking long term. He says the reshuffle will help the government to address the issues necessary “to build a better future for our children and grandchildren”.
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 & grandchildren. https://t.co/UzcGRgOCBJ
— Rishi Sunak (@RishiSunak) February 7, 2023
And here are two tweets from two opposition MPs who sit on the Commons culture committee. They don’t sound won over by Richard Sharp either.
From the SNP’s John Nicolson
After an hour Richard Sharp still doesn’t seem to understand why it was wrong for him to withhold the crucial information that he facilitated a huge loan for Boris Johnson – the man appointing him as BBC Chair. He just doesn’t seem to get it. And yet it’s so basic. @CommonsDCMS
— JOHN NICOLSON M.P. (@MrJohnNicolson) February 7, 2023
From Labour’s Kevin Brennan
Yes Mr Sharp told me that during the BBC Chair appointment process he told Boris Johnson he was going to the Cab Sec to ask him how to introduce him to someone who could help BJ financially – quite extraordinary https://t.co/fY3iRsbcB5
— Kevin Brennan MP (@KevinBrennanMP) February 7, 2023
The culture committee’s hearing with Richard Sharp is over. Judging by what some journalists are saying on Twitter, he did not make a great impression. Here is some of the reaction.
From the Sunday Times’ Gabriel Pogrund, who broke the original story about Sharp’s involvement in the offer of a loan guarantee to Boris Johnson
Richard Sharp reveals he went to see Boris Johnson in No10 to discuss the BBC chairmanship before applying.
An opportunity not afforded to others during “open and fair” contest — and another detail not disclosed alongside involvement in talks about Johnson’s finances.
— Gabriel Pogrund (@Gabriel_Pogrund) February 7, 2023
From my colleague Peter Walker
Richard Sharp evidence so far:
• Was working in Downing Street anyway, on Covid projects.
• Told Johnson/Sunak he was going to apply for BBC job before he did.
• Introduced Sam Blyth to cabinet secretary.All sounds very insular and cosy.
— Peter Walker (@peterwalker99) February 7, 2023
Even if Sharp survives in the BBC role following the ongoing inquiry process, he’s pretty damaged goods, and this hearing is very much adding to the damage.
— Peter Walker (@peterwalker99) February 7, 2023
From Tortoise’s Cat Neilan
This seems entirely contradictory. If you’re so concerned with due process that you go out of your way to raise it with the cabinet secretary, why wouldn’t you do the same in the appointment hearing? https://t.co/imxIAHd5x5
— Cat Neilan (@CatNeilan) February 7, 2023
From the Guido Fawkes website
According to the Times, Rishi Sunak wanted Michael Gove to be the new science, innovation and technology secretary, but he asked to stay at levelling up.
EXCLUSIVE with @Smyth_Chris
Michael Gove was Rishi Sunak’s first choice for science, tech & innovation secretary
He was sounded out by No 10 last night but said he wanted to stay on as levelling up sec
Would have led to a far more extensive reshufflehttps://t.co/i7zPtmbmbR
— Steven Swinford (@Steven_Swinford) February 7, 2023
One source said Sunak’s planned reshuffle ‘failed to survive contact with reality’ after Gove made clear he was committed to continuing with levelling up
No formal offer was made to Gove and he did not discuss the job directly with Sunak
But it explains why Cabinet was delayed
— Steven Swinford (@Steven_Swinford) February 7, 2023
Nick Macpherson, a former permanent secretary at the Treasury, says Rishi Sunak’s Whitehall reorganisation is very similar to Gordon Brown’s in 2007.
For students of rearranged deckchairs, this seems strangely reminiscent of Gordon Brown’s 2007 vision: Dept of Energy and Climate Change, Dept of Innovation, Universities & Skills, & Dept for Business, Enterprise & Regulatory reform. #pluscachange https://t.co/37LrSRMU7p
— Nick Macpherson (@nickmacpherson2) February 7, 2023
And Grant Shapps has tweeted about his new job.
Delighted to become the first Secretary of State for the new Department for Energy Security & Net Zero. My focus will be securing our long-term energy supply, bringing down bills and thereby helping to halve inflation.https://t.co/1Qd59oCMg8
— Rt Hon Grant Shapps MP (@grantshapps) February 7, 2023
According to a report by the Institute for Government, setting up a new government department costs at least £15m, “with a further estimated cost of up to £34m when including loss of productivity as staff adjust to the new organisation”. The Liberal Democrats say that means today’s reorganisation will cost at least £60m and that it’s [£60m] a waste of money.
Christine Jardine, the Lib Dem spokesperson for the Cabinet Office, said:
Rather than fritter away tens of millions of taxpayers’ cash on costly vanity projects, [Rishi] Sunak should spend the money where it’s most needed. This cash [£60m] could fund 25m free school meals.
