Department for Business, Energy and Industrial Strategy
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| Department for Business, Energy and Industrial Strategy | |
|---|---|
| Name | Department for Business, Energy and Industrial Strategy |
| Formed | 2016 |
| Dissolved | 2023 |
| Jurisdiction | United Kingdom |
| Headquarters | Westminster |
| Preceding1 | Department for Business, Innovation and Skills |
| Preceding2 | Department of Energy and Climate Change |
| Superseding | Department for Business and Trade, Department for Energy Security and Net Zero |
| Minister1 | Theresa May |
| Minister2 | Boris Johnson |
Department for Business, Energy and Industrial Strategy was a ministerial department of the United Kingdom responsible for a portfolio that combined industrial strategy, commercial regulation and national energy policy. Formed during the premiership of Theresa May from the merger of predecessor departments, it operated through multiple secretaries of state across the administrations of Theresa May, Boris Johnson, Liz Truss and Rishi Sunak until functions were redistributed in 2023. Its remit intersected with major national initiatives and institutions including UK Research and Innovation, National Grid plc, Companies House, British Business Bank and UK participation in international fora such as the G7 and COP26.
History
The department was created in 2016 following the reshuffle by Prime Minister Theresa May that combined the Department for Business, Innovation and Skills and the Department of Energy and Climate Change; its establishment aligned with the post‑referendum policy context after the 2016 United Kingdom European Union membership referendum. Early years saw engagement with the Industrial Strategy White Paper (2017), negotiations involving European Union exit terms, and response to the COVID-19 pandemic under cabinets led by Boris Johnson and Rishi Sunak. Prominent events during its existence included contributions to the UK's role at COP26 in Glasgow, investment decisions tied to the High Speed 2 project, and industrial interventions related to Rolls-Royce Holdings and the Jaguar Land Rover supply chain. The department's eventual split in 2023 recreated specialised bodies: the Department for Business and Trade and the Department for Energy Security and Net Zero.
Responsibilities and policy areas
The department oversaw regulatory frameworks affecting corporate entities registered at Companies House, competition matters involving the Competition and Markets Authority, and industrial strategy instruments aimed at sectors such as aerospace (e.g. BAE Systems), automotive (e.g. Jaguar Land Rover), chemicals (e.g. INEOS), and pharmaceuticals (e.g. GlaxoSmithKline). Energy policy covered electricity transmission operated by National Grid plc, nuclear strategy involving EDF Energy and proposals for new nuclear projects like Hinkley Point C, and low‑carbon technologies promoted alongside UK Research and Innovation and the Engineering and Physical Sciences Research Council. The department administered innovation funding and research links to institutions including the University of Oxford, University of Cambridge, Imperial College London, and corporate partnerships with Rolls-Royce Holdings and BP. Trade and inward investment intersected with bodies such as the British Business Bank and export promotion efforts connected to the Department for International Trade before organisational changes in 2023.
Organisation and leadership
Leadership comprised the Secretary of State role held by figures including Greg Clark, Andrea Leadsom, Kwasi Kwarteng, and Grant Shapps, supported by ministers with portfolios for energy, business, and science such as Chris Skidmore and Anne-Marie Trevelyan. Permanent civil service leadership included permanent secretaries who coordinated with agencies like Ofgem and the Competition and Markets Authority. The department maintained regional engagement with devolved administrations in Scotland, Wales, and Northern Ireland and liaised with local enterprise partnerships including Greater London Authority stakeholders and city authorities such as the Greater Manchester Combined Authority and Glasgow City Council on industrial strategy and energy infrastructure.
Agencies and non-departmental public bodies
A range of executive agencies and non-departmental public bodies reported to or worked closely with the department: Companies House, UK Research and Innovation, the British Business Bank, the Competition and Markets Authority, Ofgem, the Marine Management Organisation on offshore energy, and the Met Office for climate modelling used in energy policy. The department also sponsored research councils like the Arts and Humanities Research Council and the Biotechnology and Biological Sciences Research Council through funding frameworks, and maintained links with innovation catapults such as the High Value Manufacturing Catapult and national laboratories including Rutherford Appleton Laboratory.
Budget and staffing
Annual budgets combined capital and resource allocations covering grants, capital investment in projects such as Hinkley Point C and low‑carbon infrastructure, and operational funding for regulatory bodies like Ofgem and Companies House. Expenditure priorities often reflected governmental pledges on net zero targets, industrial strategy interventions, and pandemic recovery packages involving schemes that supported sectors including aviation players like British Airways and easyJet through targeted measures. Staffing included civil servants across headquarters in Westminster, regional offices, and secondees from industry and academia, with personnel policies guided by the Civil Service framework.
Controversies and criticism
The department attracted criticism over handling of energy security decisions, procurement and state aid interventions such as support for Hinkley Point C and assistance to national champions like Rolls-Royce Holdings; scrutiny involved parliamentary committees including the Business, Energy and Industrial Strategy Select Committee and public inquiries related to project governance. Its role in industrial policy during the COVID-19 pandemic—notably loan schemes and support for airlines including British Airways—prompted debate in the House of Commons and media outlets like The Guardian and The Financial Times. Questions were raised over regulatory independence when interacting with the Competition and Markets Authority and about transparency following controversies over ministerial reshuffles (e.g. the brief tenure of Kwasi Kwarteng and policy reversals under Liz Truss). Environmental campaigners, including Friends of the Earth and Greenpeace United Kingdom, challenged aspects of energy and planning decisions, while trade unions such as the Trades Union Congress engaged on jobs and industrial strategy outcomes.