I am making this statement on behalf of the Prime Minister to bring to the attention of the House the following changes to the Machinery of Government.

Today, we are fundamentally rewiring the state, changing the geography of government to deliver a stronger, more strategic centre that empowers local leaders, and acts as the engine room for driving economic growth across the whole country.

To ensure places are at the very heart of government strategy, the Prime Minister is establishing No.10 North as the engine room of devolution and good growth in every postcode, across government and the wider economy. This will include targeted transfers of overarching strategic functions: moving local economic growth and devolution strategy from the Ministry of Housing, Communities and Local Government (MHCLG), and local economic growth policy from HM Treasury directly into No 10 North. These departments will continue to exercise some remaining functions in these areas. This ensures that local economic growth policy and regional empowerment are no longer isolated from one another, establishing No 10 North as the dominant driver of the UK’s economy.

To ensure the centre of government is focused on our top strategic priorities, the Prime Minister is creating an Office for the Prime Minister and the Cabinet (OPMC), which will house No 10, No 10 North and teams within the Cabinet Office directly serving the Prime Minister and Cabinet. The department will additionally oversee a new OneGov Delivery Agency which will manage operational services at arm’s length, including the Government Recruitment Service, Pensions, Shared Services strategy, and Security Vetting. The OPMC will be led by the Cabinet Secretary.

The functions of the Department for Science, Innovation and Technology (DSIT) will be redistributed to align with our core economic and social agenda, embedded as vital engines of growth exactly where they can have the most direct impact. This move recognises that technology and innovation are not separate sectors of our economy – they are the foundation of all future industry, culture, and public service delivery.

Recognising that the transformative scale of Artificial Intelligence (AI) advances requires a strategic, whole-of-government approach from the centre, the Prime Minister is establishing a new AI Taskforce within the OPMC. Supported by a Prime Ministerial adviser on AI, this central team will drive the Government’s overall strategy on AI to unlock the opportunities it holds for growth, prosperity and public sector transformation. The Cabinet Office will also take the lead on AI adoption across the Civil Service, reflecting the urgency of delivering that transformation for the benefit of people across the country. To deliver this step change, responsibility for AI strategy, public sector AI adoption and the AI Security Institute will move to the Cabinet Office

A strengthened Department for Digital, Culture, Media and Sport (DCMS) will bring together the current DCMS remit with responsibility for digital foundations, digital transformation, digital inclusion and skills, information resilience and online harms. This provides critical scale and recognises that culture and technology are inseparable drivers of our modern economy, while bringing coherence to the online safety agenda. It also emphasises our commitment that bringing together levers to support youth policy online and in real life will build a stronger package of support for young people.

To signify our global leadership in science and innovation and the continuing role they play in the UK economy, the Department for Business and Trade will be renamed as the Department for Business, Innovation, Science and Trade (DBIST). It will take on responsibility for the science and innovation portfolio, as well as emerging sectors. This will align our science and research base directly with commercial application and job creation.

As part of this overall restructuring, several functions will move out of the Cabinet Office to slim down the centre of government and align them with departments suited to their purpose: the Office for Equality and Opportunity will move to the Ministry of Housing, Communities and Local Government; the Office for Impact Economy and responsibility for policy on digital identity will move to DCMS; the Public Sector Fraud Authority will move to the Department for Work and Pensions (DWP) with continued central sponsorship from HM Treasury; and the Investment Security Unit will move to DBIST.

Where possible, these Machinery of Government changes will take practical effect from today.

https://www.theyworkforyou.com/wms/?id=2026-07-21.hlws298.0