Rishi Sunak reshuffle – live: PM finally replaces Zahawi, but Raab survives

Rishi Sunak has announced a mini-reshuffle as he replaces his sacked Tory chairman Nadhim Zahawi and tries to boost his party’s disastrous poll ratings.

The prime minister’s loyal ally Greg Hands has been named as successor for Mr Zahawi, sacked for breaching the ministerial code over his tax affairs.

The PM has broken up the Department for Business, Energy and Industrial Strategy (BEIS) into separate ministries – creating a new energy department and merging trade into business.

Business secretary Grant Shapps has been moved to become the new energy and net zero secretary, while Kemi Badenoch is promoted to business and trade secretary as part of the Whitehall shake up.

Mr Sunak has also split the Digital, Culture, Media and Sport (DCMS) department. Michelle Donelan has a new role as science and technology secretary, while Lucy Frazer replaces her as culture secretary.

Meanwhile, deputy PM Dominic Raab has survived the mini-reshuffle, despite growing pressure for him to stand down as the investigation into bullying allegations takes place.

Key Points

• Sunak moves Shapps and Badenoch in BEIS break up

• Greg Hands named new Tory chairman

• Controversial MP Lee Anderson becomes deputy chair

• Johnson and Truss should admit blame for ‘chaos’, says ex-Tory leader

03:45 , Arpan Rai

Good morning, welcome to our coverage of political developments in the UK on Tuesday, 7 February.

Rishi Sunak ‘plotting mini cabinet reshuffle’

04:14 , Adam Forrest

Rishi Sunak is expected to unveil a mini-reshuffle today as he looks to improve his party’s disastrous poll ratings, as well as replace the sacked Nadhim Zahawi.

It has been a week since the prime minister dismissed Mr Zahawi as Tory party chair for breaching the ministerial code over his tax affairs scandal and, with no successor having yet been named, reports suggest Mr Sunak has been plotting a broader shake-up of his top team.

The overhaul could potentially stretch to include the makeup of the government itself, amid fresh claims that the PM is considering breaking up the Department for Business, Energy and Industrial Strategy into separate ministries.

Andy Gregory reports here:

Rishi Sunak ‘plotting mini-reshuffle’ as he replaces Zahawi as Tory party chair

Sunak could break up Department for Digital, Culture, Media and Sport

04:33 , Arpan Rai

Rishi Sunak is looking to split up Michelle Donelan’s Department for Digital, Culture, Media and Sport and create culture and sport as their own standalone departments, The Sun reported.

Mr Sunak alternatively opt to make culture and sport one department, with a new ministry dedicated to science and digital, according to the paper.

“The focus is making government work better but in reality, it leaves senior ministers looking over their shoulder and leaves a big question over the future of [Dominic] Raab who faces a bullying inquiry,” a source said.

Rishi Sunak’s first 100 days in the job: Scandals, sackings and U-turns

04:49 , Arpan Rai

Rishi Sunak’s administration has suffered from a series of scandals, some partly inherited from Boris Johnson’s time in Downing Street.

His tenure — which passed 100 days late last week — has also been plagued by poor poll ratings, probes into his ministers’ conduct and some major policy climb-downs, leaving his authority among Tory MPs already under threat.

The Independent takes a closer look at the sleaze problems and rebellions swirling around Mr Sunak as he tries to reset his premiership ahead of crucial local elections.

Scandals, sackings and U-turns: Rishi Sunak’s first 100 days in the job

Dominic Raab likely safe in cabinet reshuffle

05:22 , Arpan Rai

Dominic Raab is expected to survive a potential reshuffle today as prime minister Rishi Sunak has indicated he would wait for the outcome of an inquiry into the deputy prime minister’s conduct before taking any action.

Mr Raab, who is also the justice secretary, is being investigated by senior lawyer Adam Tolley KC over bullying allegations – with dozens of officials thought to be involved in eight formal complaints. Mr Raab has denied the bullying allegations.

One in three Conservative voters view Tories as ‘party of sleaze’

05:31 , Arpan Rai

New polling for The Independent shows more than one-third of Conservative voters view the Tories as “the party of sleaze” as Rishi Sunak struggles to draw a line under the scandal-laden era of Boris Johnson.

The Savanta ComRes survey found that 45 per cent of voters view the Tories as the party sleaze – including 37 per cent of those who voted Conservative at the 2019 election.

Only 1 in 10 voters (11 per cent) view Mr Sunak’s party as “moral”. In comparison, 38 per cent say Labour is the party of “morals” and only 14 per cent view the opposition as the party of sleaze.

Read the full story here:

One in three Conservative voters view Tories as ‘party of sleaze’

Cabinet rejig to have ‘domino effect’ – report

06:00 , Arpan Rai

The potential cabinet overhaul by Rishi Sunak is expected to be “relatively limited” with a “domino effect” caused by the naming of a successor for Nadhim Zahawi, reported The Times, citing a government source.

The prime minister is expected to appoint a new Tory party chair, after he sacked Mr Zahawi over his tax affairs more than a week ago.

Rishi Sunak spent thousands on helicopter trips after taking office

06:22 , Adam Forrest

Since entering office Rishi Sunak has taken private helicopter trips to North Yorkshire worth thousands of pounds, reports The Guardian.

The commute to his Richmond constituency from a London heliport is expected to spark further questions about Mr Sunak’s pledge to tackle the climate crisis.

The PM is believed to have used private helicopters from London on dates in November and December, costing about £16,000. These were privately funded rather than being paid for by the taxpayer, the report added.

Downing Street has not commented on the report so far.

‘Incredibly disrupted week’ grips NHS

06:55 , Arpan Rai

The NHS is bracing itself for more disruptions this week and more strikes today as the government has been accused of being “on strike” itself with prime minister Rishi Sunak, health secretary Steve Barclay and business secretary Grant Shapps reported to be “missing in action”.

Health leaders monitoring the crisis said that the service is anticipating an “incredibly disrupted week” as it faces strikes by nurses, ambulance staff and physiotherapists.

Monday saw the largest strike in NHS history and more upheaval is expected today as nurses continue their strike action.

Tens of thousands of workers in England have staged walkouts, including members of the Royal College of Nursing (RCN) alongside GMB and Unite paramedics, call handlers and other staff at ambulance trusts.

NHS facing ‘incredibly disrupted week’

BBC chairman to be grilled by MPs amid questions over Boris Johnson loan

07:31 , Thomas Kingsley

BBC chairman Richard Sharp faces a grilling by MPs after the disclosure that he helped Boris Johnson secure a loan of up to £800,000 before the then-prime minister backed his appointment to lead the broadcaster.

Mr Sharp will appear before the Commons Digital, Culture, Media and Sport (DCMS) Committee on Tuesday morning to face questions on his involvement in Mr Johnson’s financial affairs before getting the job.

The cross-party panel of MPs is set to challenge him over his apparent failure to tell them about the arrangement at his pre-appointment hearing in January 2021.

Read the full story below:

BBC chairman to be grilled by MPs amid questions over Boris Johnson loan

Minister declines to comment on reports of mini reshuffle

07:48 , Thomas Kingsley

Development minister Andrew Mitchell declined to comment on reports of a mini reshuffle being planned by Rishi Sunak.

According to The Times newspaper, Mr Mitchell is one of those linked to the role of Tory chairman to replace the sacked Nadhim Zahawi.

He told GB News: “Well, these are matters way above my paygrade and they are matters for the prime minister, but I'm very happy indeed doing a job which I've done before and loved very much, which is the international development job and I'm going to do my best, particularly today, to see that Britain puts its shoulder to the wheel and that we save as many lives as we can.”

He also defended the position of Dominic Raab as deputy prime minister, amid calls for him to stand aside while an investigation is ongoing into bullying allegations, saying there is a “process around these allegations” and it “should be followed”.

‘Wait and see’ if Rishi Sunak will reshuffle cabinet

09:00 , Liam James

Andrew Griffiths, the Economic Secretary to the Treasury, would not comment on reports that Rishi Sunak is poised for a mini-reshuffle and reorganisation of government departments.

Appearing on BBC Radio 4’s Today programme, he said: “If the prime minister has got something to say on how to reorganise government then we’ll have to wait and see that. What I’m talking about this morning is the very exciting prospect of a digital pound.”

The government has announced a consultation on plans to introduce a secure digital currency.

Johnson and Truss should admit blame for ‘chaos’, says ex-Tory leader

09:37 , Adam Forrest

Boris Johnson and Liz Truss should stop blaming others for their failures and take responsibility for helping sow “chaos”, former Tory leader William Hague has said.

In a scathing attack on the ex-prime ministers – both booted out of No 10 by their own party last year – Mr Hague suggested that they were scapegoating after “completely screwing things up”.

More details here:

Boris Johnson and Liz Truss should admit blame for ‘chaos’, says ex-Tory leader

Cabinet meeting delayed until this afternoon

09:44 , Adam Forrest

Rishi Sunak has pushed back his cabinet meeting until mid-afternoon to allow for the big announcements to be made this morning, according to reports.

New science, tech and innovation department?

09:47 , Adam Forrest

Michelle Donelan’s Digital, Culture, Media and Sport (DCMS) department is set to be broken up this morning – with a new ministry dedicated to science and digital. Reports suggest it will be called the department for Science, innovation and technology.

Sources at the Department for International Trade told The Independent they have not been told what will happen to the department this morning. There is widespread expectation it will be split into energy and separate department for business and trade.

Nadine Dorries ‘sad’ her old department to be broken up

09:55 , Adam Forrest

Boris Johnson loyalist Nadine Dorries said it was “sad” that her former Department for Digital, Culture, Media and Sport looksset to be broken up.

The ex-culture secretary said the department has “tragically lacked profile of late” despite being the most effective in Whitehall.

“Track record in tech, digital, gigabit roll out, telecoms, data speaks for itself,” Ms Dorries said on Twitter.

BP profits show ‘outrageous’ failure of windfall tax, says Labour

10:09 , Adam Forrest

As we wait for the reshuffle announcements, it has emerged that BP profits more than doubled to £23bn last year amid a spike in oil and gas prices during Russia’s illegal invasion of Ukraine.

Labour’s shadow climate secretary Ed Miliband said it was “outrageous” that Rishi Sunak had failed to implement a “proper” windfall tax on energy companies.

Lib Dem leader Ed Davey MP said: “Rishi Sunak has failed the people of this country by ignoring calls for a proper windfall tax.”

BP profits double to record £23bn after spike in oil and gas prices

Miliband: Tories ‘got it wrong’ by scrapping energy department

10:13 , Adam Forrest

Labour’s shadow climate secretary Ed Miliband said that it looked like Rishi Sunak was now admitting that the decision to get rid of the Department of Energy in 2016 was a mistake – amid widespread expectation a separate ministry will be set up again.

“So seven years after the disastrous decision to abolish the Department of Energy, the Conservatives now admit they got it wrong, but a rearranging of deckchairs on the sinking Titanic of failed Conservative energy policy will not rescue the country,” the Labour MP tweeted.

Ed Davey, the Lib Dem leader, said bringing in energy department would be a “positive step”, but added: “But, by itself, changing Whitehall machinery doesn’t get you better energy policy. Changing energy policy is also what’s needed.”

Shapps new energy secretary? Badenoch moved to business?

10:16 , Adam Forrest

Business secretary Grant Shapps is set to be named the new energy secretary, while Kemi Badenoch (currently international trade secretary) is set to become the new business and trade secretary as part of the big BEIS shake up, according to The Times.

The newspaper’s political editor also hears that Greg Hands will replace Nadhim Zahawi as the Tory party chairman.

Greg Hands ‘new Tory chairman’

10:31 , Adam Forrest

Junior trade minister Greg Hands is taking over from Nadhim Zahawi as the Conservative party, according to multiple reports.

A big supporter of Rishi Sunak, the MP for Hammersmith and Fulham has previously enjoyed roles as Treasury secretary and deputy chief whip.

BBC chair denies helping Boris Johnson secure loan

10:58 , Adam Forrest

BBC chairman Richard Sharp has denied that he gave Boris Johnson financial advice as he appeared before culture select committee, after the disclosure that he helped him secure a loan of up to £800,000 before the then-prime minister backed his appointment to lead the broadcaster.

Mr Sharp said his old friend Sam Blythe – Mr Johnson’s cousin – raised concerns that Mr Johnson was having financial difficulties and wanted to help.

“I said to him at that time: ‘You may be a family member, but you need to be very careful. Things need to be done by the book. There are rules in this country and these rules exist for a good reason. You’re a foreigner and therefore before you contemplate doing anything, or providing any assistance to the prime minister, you should involve the Cabinet Office’.”

BREAKING: Greg Hands replaces Zahawi and BEIS broken up

11:07 , Adam Forrest

Rishi Sunak’s loyal ally Greg Hands has been named as the successor for Nadhim Zahawi as Tory chair.

The PM has broken up the Department for Business, Energy and Industrial Strategy (BEIS) into separate ministries – creating a new energy department and merging trade into business.

Business secretary Grant Shaps has been moved to become the new energy and net zero secretary, while Kemi Badenoch is set be the new business and trade secretary as part of the big Whitehall shake up.

Mr Sunak has also split up the Digital, Culture, Media and Sport (DCMS) department. The former department head Michelle Donelan takes up a new role as science, innovation and technology secretary, while Lucy Frazer is named the new culture secretary.

Sunak wanted Gove as science secretary

11:58 , Adam Forrest

Rishi Sunak wanted Michael Gove to be his science and technology secretary at the new department, but the senior figure asked to stay at the levelling up department, according to reports. No 10 has not denied that he turned down the offer.

Grant Shapps has said he is “delighted” to be leading the new Department for Energy Security & Net Zero. He said his focus would be “securing our long-term energy supply, bringing down bills and thereby helping to halve inflation”.

And Greg Hands has said he is “excited” to be the new Conservative chairman, adding: “The work starts right away.”

Jeremy Hunt urged to admit Brexit had made UK ‘poorer’

12:27 , Adam Forrest

Labour Barry Sheerman has urged all MPs to admit “we are poorer in this country because of Brexit”.

The MP for Huddersfield asked chancellor Jeremy Hunt if he agreed with comments by former Tory home secretary Amber Rudd that some Brexiteers, after “a few drinks”, will admit it had been disastrous.

He added: “Could we on all benches admit we are poorer in this country because of Brexit and do something about it?”

Mr Hunt – a Remainer – replied: “If Labour really are against Brexit, they should have the courage of their convictions and say they want to rejoin the EU and that is the problem because they don’t believe they can make a success of it, they will never be able to run the British economy under it.”

New departments cost £15m to set up, says think tank

13:46 , Adam Forrest

The Institute for Government estimates that creating new department costs at least £15m, “with a further estimated cost of up to £34m when including loss of productivity as staff adjust to the new organisation”.

The Lib Dems’ Christine Jardine said: “Rather than fritter away tens of millions of taxpayers’ cash on costly vanity projects, [Rishi] Sunak should spend the money where it’s most needed. This cash could fund 25 million free school meals.”

Rishi Sunak said the creation of four new departments – two entirely new, and new significantly changed – would “focus teams on the issues that will build a better future for our children and grandchildren”.

Controversial Tory Lee Anderson named deputy chair

13:57 , Adam Forrest

Right-wing Tory Lee Anderson has been named deputy chairman of the Conservative party.

The controversial MP has previously claimed there was no “massive need” for food banks, and said food banks failed to cannot “budget properly”.

14:33 , Adam Forrest

Thanks. That’s all from our live politics coverage for today, after Rishi Sunak announced his shake-up of four government departments and revealed Greg Hands would be taking over from Nadhim Zahawi as Tory chairman.