Secretary of State for Business, Energy and Industrial Strategy
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| Secretary of State for Business, Energy and Industrial Strategy | |
|---|---|
| Post | Secretary of State for Business, Energy and Industrial Strategy |
| Body | United Kingdom |
| Incumbent | See main article |
| Department | Department for Business, Energy and Industrial Strategy |
| Style | The Right Honourable |
| Seat | Westminster |
| Appointer | Monarch |
| Formation | 2016 |
Secretary of State for Business, Energy and Industrial Strategy is a senior ministerial office in the United Kingdom created in 2016 to combine responsibilities over business and energy policy. The holder was a member of the Cabinet and worked alongside ministers from departments such as the HM Treasury, Foreign Office, and DEFRA to coordinate industrial strategy, energy security, and innovation. The post interacted with devolved administrations in Scotland, Wales, and Northern Ireland as well as international partners including the European Union, United States, and China.
History
The office was established by Prime Minister Theresa May in 2016 through the merger of the Department for Business, Innovation and Skills and the Department of Energy and Climate Change following the EU referendum. Its creation reflected policy priorities set after the 2015 United Kingdom general election, with influences from figures such as David Cameron and Philip Hammond. The portfolio covered legacies from earlier posts including the Secretary of State for Trade and Industry and the Secretary of State for Energy. Over time the role intersected with initiatives stemming from the Industrial Strategy White Paper and the Paris Agreement, and its remit evolved under successive administrations including those of Boris Johnson and Rishi Sunak. The position was later affected by machinery-of-government changes linked to the reshuffle.
Responsibilities and Powers
The Secretary supervised policy areas formerly split between BIS and DECC: industrial strategy, business regulation, research funding, energy policy, and climate commitments. Statutory powers derived from acts such as the Energy Act 2013, the Companies Act 2006, and the Climate Change Act 2008 informed interventions in markets like the electricity sector, oil and gas industry, and renewable energy projects. The office directed public bodies including funding agencies like UK Research and Innovation and regulators such as the Ofgem and the Competition and Markets Authority. Engagements also included international instruments like the World Trade Organization rules and coordination with the International Energy Agency.
Ministers and Cabinet Role
Holders of the post sat in the Cabinet of the United Kingdom and were accountable to the House of Commons and, occasionally, the House of Lords. They worked alongside junior ministers such as a Minister of State for Business and Industry, a Minister of State for Energy, and parliamentary under-secretaries tasked with portfolios tied to research funding, consumer affairs, and net zero delivery. The Secretary liaised with figures including the Chancellor of the Exchequer, the Foreign Secretary, and the Home Secretary on cross-cutting issues like investment, trade, and security. Prominent holders engaged with international counterparts such as the United States Secretary of Energy and ministers from Germany, France, and Japan during summits like the G7 and UN Climate Change Conference.
Departmental Structure and Agencies
The Department for Business, Energy and Industrial Strategy encompassed directorates and agencies including UK Research and Innovation, the Met Office-adjacent science divisions, executive agencies responsible for company registration, and regulatory partners such as Ofgem and the Competition and Markets Authority. It worked with delivery bodies like British Business Bank and advisory entities including the Advisory Committee on Business Appointments. Regional offices coordinated with Scottish Government, Welsh Government, and the Northern Ireland Executive on devolved matters. The Department managed grant schemes, procurement with entities such as Innovate UK, and oversight of strategic infrastructure projects involving companies like National Grid and state-owned enterprises.
Major Policies and Initiatives
Major initiatives included the Industrial Strategy with missions for productivity and innovation, the commitment to net zero greenhouse gas emissions by 2050 following the Climate Change Act 2008 amendments, support for carbon capture and storage clusters, and auction frameworks for renewable energy contracts. The Secretary led interventions such as state aid assessments aligned to European Commission rules (while the UK remained party to prior frameworks), investment promotion via the UK Export Finance, and research funding priorities through UK Research and Innovation and the EPSRC. Responses to crises involved programmes to support firms affected by events like the COVID-19 pandemic and coordination of industrial policy during supply shocks tied to the Russia–Ukraine conflict.
Criticism and Controversies
The office faced criticism over decisions on energy projects, planning consents, and corporate support that drew scrutiny from parliamentarians across the House of Commons, think tanks such as the Institute for Fiscal Studies and Chatham House, and campaign groups like Friends of the Earth and Greenpeace. Debates arose concerning the balance between support for fossil fuel industries versus investment in renewables, procurement transparency, and relations with multinational corporations including controversies involving firms in the aerospace industry and automotive industry. Parliamentary inquiries, Select Committee reports from bodies such as the Business, Energy and Industrial Strategy Committee, and media scrutiny in outlets like the Financial Times and The Guardian examined ministerial decisions, conflicts of interest, and the effectiveness of policies intended to deliver industrial strategy outcomes.