UK business department set for expanded remit under Burnham plans

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UK business department expansion

Highlights

Plans under discussion would expand the Department for Business and Trade’s remit, potentially absorbing energy policy and elements from the Department for Science, Innovation and Technology.
Reynolds is highly likely to return as business secretary, with his role possibly covering decisions on North Sea oil and gas amid ongoing party debate.
Burnham, facing policy pressure over oil and gas, is expected to express support for the sector during an upcoming Aberdeen visit, specifically regarding the Rosebank and Jackdaw fields’ approvals.

Cabinet plans and departmental overhaul

As first reported by Financial Times, people close to the discussions say Burnham is drawing up plans to expand the Department for Business and Trade and reinstate Reynolds, who served as business secretary from the 2024 general election until last September’s reshuffle, when he became chief whip.

Burnham says he has not yet finalised his cabinet, but colleagues say the broad shape of his top team is already emerging. Several Labour and business figures say Reynolds is highly likely to return to his previous post, where he is regarded positively by union leaders and some executives. Reynolds has also made clear to multiple people that he has not enjoyed serving as chief whip.

Under the plans being discussed, the business department could gain control of more business-facing energy policy from the Department of Energy and Net Zero, which is currently run by Ed Miliband. One Labour figure says that could place decisions including North Sea oil and gas policy within Reynolds’ remit.

There is also speculation in Whitehall over the future of the Department for Science, Innovation and Technology. Some officials and party figures believe parts of that ministry could be folded into the business department, and there have even been discussions about fully or partly recreating the former Department for Business, Energy and Industrial Strategy, which the previous Conservative government dissolved in February 2023.

Industry policy and business response

One Labour figure familiar with the talks says an enlarged Department for Business and Trade could be rebranded as a ministry of industry, in line with Burnham’s pledge to reindustrialise Britain. The move would come as Labour faces pressure over its stance on oil and gas, particularly after union criticism of job losses linked to the party’s policy of ending new exploration licences.

Burnham has not signalled that he will reverse that ban, but he is due to visit Aberdeen in the coming weeks to underline support for the sector. He is expected to indicate that he wants the Rosebank oilfield and Jackdaw gasfield to receive approval as they await a quasi-judicial review.

Reynolds’ previous tenure as business secretary included trade deals and emergency action over British Steel, including efforts to secure raw material shipments to keep the blast furnace operating. On Friday, the CBI called on Burnham’s team to address energy and employment costs, skills shortages, and tax and regulatory complexity. Rain Newton-Smith, the group’s chief executive, says businesses want Burnham’s team to succeed but that the main challenge is execution.

Our earlier article on Burnham’s reindustrialisation push highlighted South Yorkshire’s Advanced Manufacturing Research Centre (AMRC) in Rotherham as a working model of industrial renewal built on long-term collaboration between universities, industry and regional leaders. It showed how initiatives like the AMRC’s new COMPASS materials facility aim to raise productivity, strengthen skills, and spread growth beyond traditional hubs—an approach Burnham wants to replicate more widely and at a faster pace.

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