The new department has been formed from the merger of the Department for Business, Enterprise and Regulatory Reform and the Department for Innovation, Universities and Skills.
BIS will be headed up by Business Secretary Lord Mandelson, who has also been appointed First Secretary of State, while Lord Drayson will remain as Science and Innovation Minister and Pat McFadden as Business Minister.
Lord Drayson says, ‘The Prime Minister remains fully committed to science and innovation and is giving me the resource and framework to drive this agenda forward.
‘I look forward to working with Peter Mandelson to ensure that all of the ground-breaking research which takes place on our shores can continue to thrive and contribute to the health of our economy, people and planet.’
Former Innovation Secretary John Denham has been appointed Communities Secretary, replacing Hazel Blears, who stood down from Cabinet last week.