Cabinet reshuffle
Posted: 12 June 2009
Ben Margulies from LSIS has written some notes on the recent Cabinet reshuffle. The following is an edited version of Ben's notes:
DIUS
The Department for Innovation, Universities and Skills (DIUS) has been merged into the Department for Business, Enterprise and Regulatory Reform (BERR). The new merged department is the Department for Business, Innovation and Skills (BIS). It appears from the press notice about BIS's formation that the FE and skills sector, as well as universities, will come under its jurisdiction. Early press reports had suggested FE colleges and universities would be transferred to DCSF, but this does not appear to be the case.
Link to the press notice on the merger
Among its duties, BIS will work to:
- Assess the changing skills needs of the UK economy, especially the intermediate and high skills vital in a global economy and design policies to meets them through public and privately funded life long training;
- Invest in the development of a higher education system committed to widening participation, equipping people with the skills and knowledge to compete in a global economy and securing and enhancing Britain's existing world class research base;
- Continue to invest in skills through the Further Education system to help people through the downturn and to prepare Britain for the future;
- Deliver on the government's ambitious objectives to expand the number of apprenticeships;
Lord Mandelson will be the secretary of state for the new department. John Denham has become the new communities secretary, in succession to Hazel Blears (of more below). It is not yet clear who the department's junior ministers will be, though early reports indicate David Lammy will keep the HE portfolio. LSIS seems likely to move to this department's jurisdiction.
DCSF
This department remains unchanged structurally. Ed Balls remains its secretary. Jim Knight, however, is no longer schools minister - he's been moved to the employment portfolio in Work and Pensions. His replacement has not yet been announced. Dawn Primarolo, a long-serving junior minister, becomes the new children's minister. She replaces Beverly Hughes.
Communities and Local Government
John Denham replaces Hazel Blears as the secretary of state here. John Healey, the local government minister, moves up to become Minister of State for Housing, replacing Margaret Beckett.
Department for Work and Pensions
Yvette Cooper, former chief secretary to the Treasury, becomes the new work and pensions minister. She replaces James Purnell, who resigned so spectacularly last week. Jim Knight becomes employment minister within this department - he replaces Tony McNulty, who resigned.
Cabinet Office
The office responsible for coordinating Government policy and a lot of policy development work, the Cabinet Office now welcomes Tessa Jowell as its new minister. She was formerly Olympics minister in the Cabinet Office, and was culture secretary under Tony Blair. Ms. Jowell replaces Liam Byrne, now chief secretary to the Treasury (replacing Yvette Cooper, who replaces James Purnell - hence the term 'reshuffle').
Enterprise Tzar
Sir Alan Sugar, the businessman and Apprentice host, will become 'enterprise tsar', with a seat in the House of Lords. He is not expected to be a minister.
Analysis
The most obvious effect of the reshuffle is that DIUS no longer exists - the FE and skills sector now falls under BIS.
By the whole of DIUS and BERR, the Government maintains the logic of various policy agendas that have been prevalent in FE and skills over the last few years. For example, it maintains the split of the education system at 19 - HE and FE go to BIS, and schools remain with DCSF. This split is the basis for the creation of the new funding agencies that are replacing the LSC, and to the transfer of 16-19 funding to local authorities. Early reports indicated that HE and FE might go to DCSF, which would have undermined this agenda and these reforms by splitting the post- 19 system between two departments.
The merger of DIUS and BERR may also reflect the ideas of the Leitch Agenda. Leitch called for a employer-facing, demand-led skills sector, so uniting the administration of skills and business would make logical sense.
It's also worth noting that FE and skills falls under the jurisdiction of Lord Mandelson. Though at times controversial, Lord Mandelson has become a very prominent member of the Government (he has been described as 'deputy prime minister in all but name' in some press reports). Therefore, FE and skills potentially gain a powerful new advocate. However, he is also an advocate with many competing demands for his time - more than Mr. Denham had.
John Denham, who already has a relationship with the sector, moves to Communities and Local Government. This could help build bridges between FE and skills and local government, which has been an aim of national policy for the last few years.
Work and Pensions also gains in power, as its new minister, Yvette Cooper, is considered to be close to Gordon Brown.