Rishi Sunak reshuffle: PM appoints Greg Hands as Tory chair as Grant Shapps made energy security secretary

Rishi Sunak has announced a mini reshuffle of his Cabinet on Tuesday (7 February), appointing a new Tory party chair and creating four new departments.

Greg Hands, former trade minister, has replaced Nadhim Zahawi as the new Tory party chair after Zahawi was sacked following an investigation that found he had breached the ministerial code. Zahawi failed to be transparent about the multimillion-pound settlement with HM Revenue & Customs reached while he was Chancellor, which included paying a penalty.

As part of the shake-up of Whitehall departments, Grant Shapps has become the new Energy Security and Net Zero Secretary, Michelle Donelan has been named Secretary of State for Science, Innovation and Technology and Kemi Badenoch is appointed Secretary of State for Business and Trade.

Lucy Frazer has also become the new Culture Secretary as part of Sunak’s reshuffle.

Any minister who leaves office as part of the reshuffle and is not given another role within three weeks will be entitled to a severance payment equal to a quarter of their ministerial salary - worth up to almost £17,000 for the most senior ministers.

Dave Penman, head of the trade union for senior civil servants, FDA, warned earlier today that merging departments is a very time-consuming and costly process.

He tweeted: “Remember every machinery of govt [government] change involves not only changing the IT systems, back office functions and a complete staffing reorganisation, but each govt dept is a separate employer with separate pay systems that take years to sort out.”

The government said that the creation of four new departments would “ensure the right skills and teams are focused on the Prime Minister’s five promises”.

‘The work starts right away’

Newly appointed Tory party chairman, Greg Hands, said it was an “honour” to take the role.

He tweeted: “I am excited to be asked by (Rishi Sunak) to be Chairman of the (Conservatives).

“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.”

While newly created Energy Security and Net Zero Secretary, Grant Shapps, tweeted: “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 have inflation.”

‘Sinking Titanic of failed Conservative energy policy’

However, shadow climate secretary Ed Miliband said that it looked like Sunak was now admitting that the decision to get rid of the Department of Energy in 2016 was a mistake.

The Labour MP tweeted: “So seven years after the disastrous decision to abolish the Department of Energy, the Conservatives now admit they got it wrong, but a rearranging of deckchairs on the sinking Titanic of failed Conservative energy policy will not rescue the country.

“Britain’s energy bills are too high and our system too weak because of years of disastrous decisions: the ongoing onshore wind ban, blocking of solar, slashing of energy efficiency, disastrous regulation of the retail market and an unlawful net zero plan. All this must change.”

While environmental campaign group Greenpeace warned that the PM’s creation of a new energy department may not address the climate crisis.

Greenpeace UK’s director of policy, Dr Doug Parr, said: “As climate disasters intensify, energy costs spiral and the world continues to sink under rising seas, without other fundamental reforms, re-establishing a department for energy will be as helpful as rearranging the deck chairs on the Titanic.

“It’s government policy and underinvestment that is holding back real action on the climate and energy crises, not the departments or ministers in place. Unless the new-look department for energy is given the freedom and funding to rapidly scale up renewable energy production – both offshore and on – to sure up domestic supply, as well as roll out a nationwide scheme to insulate the tens of millions of energy-wasting homes across the country, what’s the point?”

Dominic Raab is expected to survive the reshuffle this week as Sunak indicated he would wait for the outcome of an inquiry into the Deputy Prime Minister’s conduct before taking any action.

The Justice Secretary is being investigated by Senior lawyer Adam Tolley KC over bullying allegations. Dozens of officials are thought to be involved in eight formal complaints, but Raab has denied the bullying allegations.

Sunak’s pledge to govern with “integrity, professionalism and accountability at every level” when he entered No 10 more than a 100 days ago has been dented by Zahawi’s financial affairs and Raab’s bullying claims.