Key industry ministers appointed to cabinet

Liberal Democrat business secretary Vince Cable has been replaced by Sajid Javid, while outgoing energy and climate change secretary Ed Davey has been replaced by Amber Rudd, who has been promoted from her position as energy minister.

Matthew Hancock leaves his role as minister linking both the energy and business departments to become minister for the Cabinet Office and paymaster general. He is replaced by Andrea Leadsom at the Department for Energy and Climate Change (DECC), while Nick Boles remains skills minister at the Department for Business Innovation and Skills (BIS).

The biggest threat to our long-term economic well-being remains the prospect of leaving the EU

EEF chief executive Terry Scuoler

Elsewhere Boris Johnson’s brother Jo Johnson is the new universities and science minister at BIS, while Liz Truss remains secretary of state for environment, food and rural affairs.

Following last week’s general election, trade bodies have welcomed many of the new cabinet appointment, but are already warning of the dangers to the economy posed by the UK’s planned referendum on EU membership, which the Prime Minister has promised will take place before the end of 2017.

“During the campaign we called on party leaders to build on the foundations of growth, with continuity and stability in business policy,” said EEF chief executive Terry Scuoler.

“The biggest threat to our long-term economic well-being, however, remains the prospect of leaving the EU. [David] Cameron will be under pressure to call a referendum as soon as possible, possibly bringing it [forward] to next year. The new administration must move quickly and campaign on the back of a strong and positive case for Britain’s continued membership. Any drift or dithering on this issue will mean uncertainty for British businesses, which would be very unhelpful for the long term prospects of the economy.”