The newly appointed secretary of state for business, innovation, science and trade, Jonathan Reynolds, is returning to a department he previously led, amidst a significant change in the government's structure. The standalone science and technology department, created just three years ago, has been scrapped by new prime minister Andy Burnham.
Industry leaders have expressed concerns over the proposal, with Julian Harris and Dom Hallas calling it "the wrong change at the wrong time." Matt Clifford, a former AI opportunities adviser, described the decision as "a big mistake," emphasizing the importance of addressing the country's economic and national security challenges.
Burnham's reasoning behind the change is to create a single, powerful business department that aligns with his reindustrialisation agenda. He aims to position the Labour Party as a pro-business force, building on his previous experience as a mayor of Greater Manchester.
Business groups have cautiously welcomed the new administration, with Rain Newton-Smith, chief executive of the CBI, expressing a desire for their success. However, he notes that the challenge lies in execution, particularly for small and medium-sized enterprises.
With sentiment towards the new administration fragile, SME owners are watching closely to see whether the enlarged department will live up to its promise of being a stronger champion for business. Reynolds faces the challenge of proving that a bigger department means a more effective one, amidst a tech sector in open dissent and a grants system in need of stability.
