RISHI Sunak has embarked on a major overhaul of his flagging government, breaking up the department for Business, Energy, Innovation and Science and reshuffling his cabinet.

BEIS will now be split into the Department for Energy Security and Net Zero, the Department for Science, Innovation and Technology and the Department for Business and Trade.

Meanwhile, the Department for Digital, Culture, Media and Sport will be "refocussed" as  the Department for Culture, Media and Sport.

With polls showing the Tories almost certainly heading for defeat at the next general election, the SNP said the changes were like "measuring up the Titanic for new curtains as it sinks."

The Lib Dems estimated that the overhaul would cost the taxpayer around £60m.

Grant Shapps is to head up the new Energy Security and Net Zero office, while equalities minister Kemi Badenoch, who led the charge against the Scottish Parliament's Gender Recognition Reform Bill, is to become Secretary of State for Business and Trade.

According to the Times, Michael Gove was Mr Sunak's first choice to be the new Secretary of State for Science, Innovation and Technology. 

However, he turned it down, asking to remain as the cabinet minister for Levelling Up.

Instead, the job will go to Michelle Donelan.

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Levelling up and housing minister Lucy Frazer will replace Ms Donelan as Culture Secretary.

Whoever replaces Ms Frazer as housing minister will be the sixth person to hold the post in the past year.

Greg Hands, the veteran trade minister, is to replace Nadhim Zahawi as Tory party chairman and Minister Without Portfolio.

Mr Zahawi was sacked by Mr Sunak last month over a "serious breach" of the ministerial code.

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The scale of the shake-up caught Whitehall by surprise when news first emerged in the Sun last night.

Explaining the changes, a Downing Street spokesperson said the new Department for Energy Security and Net Zero, had been tasked with "securing our long-term energy supply, bringing down bills and halving inflation."

They added: "The move recognises the significant impact rising prices have had on households across the country as a result of Putin’s illegal war in Ukraine, and the need to secure more energy from domestic nuclear and renewable sources as we seize the opportunities of net zero."

Meanwhile, the dedicated Department for Science, Innovation and Technology will aim to  "drive the innovation that will deliver improved public services, create new and better-paid jobs and grow the economy."

"Having a single department focussed on turning scientific and technical innovations into practical, appliable solutions to the challenges we face will help make sure the UK is the most innovative economy in the world," the spokesperson added.

No 10 said the Department for Culture, Media and Sport would be "re-focused" to "recognise the importance of these industries to our economy and build on the UK’s position as a global leader in the creative arts."

Downing Street said the changes would “ensure the right skills and teams are focussed on the prime minister’s five promises: to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats”.

Today’s cabinet meeting has been pushed back from this morning until 3pm.

It is unlikely there will be any change to Dominic Raab's position. The Deputy Prime Minister and Justice Secretary is under increasing pressure over multiple bullying complaints.

He is currently being investigated by lawyer Adam Tolley KC.

Mr Raab has denied any wrongdoing.

READ MORE: Ex-Tory chairman calls for Raab to be suspended over bullying claims

The reshuffle comes as Mr Sunak prepares for his first big electoral test at May's local elections. Polls suggest he is on course for a drubbing.

A survey by Redfield and Wilton Strategies, published yesterday, put Labour on 50 per cent, 26 points clear of the Tories.

Commenting, SNP Cabinet Office spokesperson Kirsty Blackman said: "This latest reshuffle is like Rishi Sunak measuring up the Titanic for new curtains as it sinks.

"This will make absolutely no difference to the lives of the people of Scotland as the same old tired faces jump on the government merry-go-round to see who gets to be in office this time.

"The only way the people of Scotland will see real change is by getting rid of this rotten UK government and becoming an independent country."

Liberal Democrat Cabinet Office Spokesperson Christine Jardine pointed to Institute for Government analysis which estimated the cost of setting up a new government department at £15 million. 

She said: “Rishi Sunak is looking weaker by the day, and this rudderless reshuffle is the latest proof.

“This reshuffle will cost the public millions while failing to change the trajectory of this government in crisis.

“Rather than fritter away tens of millions of taxpayers’ cash on costly vanity projects, Sunak should spend the money where it’s most needed. This cash could fund 25 million free school meals.”