Whitehall is poised for a “mini-reshuffle” from Tuesday, with prime minister Rishi Sunak setting up new party chairs and gutting a wide range of business departments.
Sunak has narrowed his options for the new Conservative seat after the sacking of Nadhim Zahawi, the previous incumbent, nine days ago over tax matters.
But the prime minister also said by his colleagues that he will prepare to give a promise made last year – in his first bid for the Tory leadership – to break up the Department of Business, Energy and Industrial Strategy.
Two people briefed on Sunak’s thinking said he expected to create a new science ministry to help promote the prime minister’s vision of turning the UK into a “Silicon Valley”.
The new department could see the merging of the science portfolio from BEIS with the technology responsibilities currently held by the Department for Digital, Culture, Media and Sport.
Sunak also promised in July last year to rebuild the energy department, also removing these responsibilities from BEIS, a department currently headed by Grant Shapps.
“BEIS is struggling,” said a person briefed on Sunak’s thoughts. The prime minister is under heavy pressure from Labor and Tory MPs to come up with a more compelling growth strategy.
One of the options in this Whitehall review will be to put responsibility for trade, including export promotion, back to the Shapps department, joining the Department of International Trade Kemi Badenoch.
Downing Street declined to comment on Monday night but did not rule out a reshuffle. The need to replace Zahawi as party leader has raised hopes in Westminster of a wider shuffle.
Number 10’s ethics adviser Sir Laurie Magnus found that Zahawi had breached the ministerial code seven times while handling an estimated £5 million settlement with HM Revenue & Customs.
The Conservative leader is a key role for the party, which is important in preparing for next year’s general election and in raising funds for the campaign.
Gordon Brown, Labor prime minister until 2010, created separate departments for business and energy which were later merged into the Department for Business, Energy and Industrial Strategy by Theresa May when she became prime minister.
But the energy problem has become a big political issue after the UK adopted the climate target “net zero 2050” and began to enter Russia in Ukraine, which has sent gas prices soaring and forced many western countries to re-examine the sustainability of domestic energy.
Sunak said when he became Conservative leader in July last year that he wanted to create an energy department with a remit to make Britain “energy independent”.
He also promised to create an “energy security committee” responsible for keeping the lights on and to reform the energy market to reduce bills in the future.
Meanwhile, Dominic Raab, the deputy prime minister, is fighting for his political life ahead of an official report into multiple allegations of bullying, which he vehemently denies.
Sunak has been urged by figures including FDA civil union leaders to suspend Raab until the investigation by leading employment lawyers is completed.
Sir Keir Starmer, the leader of the Labor party, is also understood to be considering a reshuffle in the coming weeks.