Andy Burnham's ascent to the premiership is set to bring significant changes to his cabinet, with a key appointment already taking shape: the reportedly imminent reappointment of Jonathan Reynolds as Secretary of State for Business. According to the Financial Times, this move is part of Mr Burnham's pledge to lead a "pro-business" government, one that will seek to drive economic growth and reindustrialisation in Britain.
Mr Reynolds' return to the business department comes after he previously served as Secretary of State from 2022 until September last year. During his tenure, he established strong relationships with employers and trade unions alike, a reputation that could prove invaluable in the new administration. Sources close to Labour and within the business community suggest this appointment is all but certain.
The reshuffle also includes plans to significantly overhaul the Department for Business and Trade, with responsibility for science potentially being transferred from the Department for Science, Innovation and Technology (DSIT). This move could see other functions currently residing within DSIT moved to the Department for Culture, Media and Sport. Some officials anticipate that the enlarged department might eventually be rebranded as a "Ministry of Industry," aligning with Mr Burnham's commitment to reindustrialisation.
However, discussions also included giving the business department greater responsibility for energy policy – though this option now appears less likely, according to individuals familiar with the talks. This has drawn concerns from some quarters, including Matt Clifford, the government's AI adviser, who warned on social media that a major reorganisation could "waste time and energy" and distract officials from effective policy delivery.
Business groups, such as the CBI, are urging the incoming government to translate its pro-business rhetoric into concrete policies – focusing on pressing issues like energy costs, skills shortages, and simplifying the tax and regulatory framework. As Mr Burnham's cabinet takes shape, these expectations will be closely watched by business leaders and observers alike.