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UtilityWeek 5th August 2016

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Policy & Regulation 12 | 6th - 12th MAY 2015 | utILItY WEEK Policy & Regulation Analysis Leadsom has her work cut out at Defra Leadsom's rise has been meteoric, but she has some difficult nuts to crack at Defra if she is to rise any further. A ndrea Leadsom's rapid political rise fell short of the top job but saw her gain a seat in the cabinet and the head office at the Department for Environ- ment, Food and Rural Affairs (Defra). The South Northamptonshire MP with- drew her challenge to Theresa May to become prime minister, and now faces a ra of chal- lenges at Defra, many of which include the fallout from Brexit, of which Leadsom was a high profile supporter. With a new appointment come the inevi- table concerns over the appointee's suitabil- ity, and Leadsom attracted a great deal of criticism aer being named as the replace- ment for Liz Truss. The former City banker and mother of three has been accused of being relatively unknown in the wider political sphere before the EU referendum campaign, and for lack- ing the top-level political experience needed to take on a cabinet role. The chairman of the environmental think- tank E3G, Tom Burke, has led the attacks on the new Defra secretary. "It was a very bad day for the environment when Leadsom was appointed secretary of state. She has no instincts for it and no knowledge of it," he said. This view is given weight by Leadsom's own admission that her first question when she was appointed as energy minister was whether climate change was real or not, although she says she is now "completely persuaded" that it is. Burke also warned Leadsom that Defra will become a difficult department to run as the UK seeks to untangle itself from Euro- pean legislation, 80 per cent of which has been set and is regulated via the EU. These include the bathing water directive, drinking water directing and water quality directives – all of which will need UK equivalents to be developed. "Defra is going to be at the front in terms of broken promises," he said. One of Leadsom's predecessors as envi- ronment secretary, Conservative Caroline Spelman, has urged the new secretary of state to engage with Defra's partner organi- sations "as well as our international col- leagues" in the EU to help her gain an understanding of the role and what is required. Elsewhere in Defra, Thérèse Coffey and Lord Gardiner of Kimble have also been appointed, and join long-standing farming minister George Eustice as part of a well- respected junior ministerial team. The new look department, which escaped a major overhaul in the cabinet and depart- mental reshuffle, has got a number of key challenges to deal with. Top among them will be the development and signing off of the non-domestic water retail market, with shadow operation due to start in October and the full go-live date in April. Added to this in the review and assess- ment of the domestic retail market, the development of the long-awaited and much needed abstraction reforms, the outcome of the Letwin review into flooding, the develop- ment of resilience in the sector, promoting sustainable urban drainage, and the han- dling of the environmental impacts and per- mitting for fracking. Successful handling of all of these issues, as well as the split from the EU, will not only provide the water sector with confidence and stability going forward, but it will also help Leadsom continue her rapid political rise. BEis • Greg Clark, secretary of state for business, energy and industrial strategy. • Nick Hurd, climate change and industry minister. • Jo Johnson, universities, science, research and innovation minister (joint minister with Department for Education). • Baroness Neville-Rolfe, energy and intel- lectual property minister. • Margot James, minister for small business, consumers, and corporate responsibility. • Jesse Norman, minister for industry and energy. On the new BEIS team, business and energy secretary Greg Clark said: "I am thrilled to have been appointed to lead this new department charged with delivering a comprehensive indus- trial strategy, leading government's relationship with business, furthering our world-class sci- ence base, delivering affordable, clean energy and tackling climate change. "I'm supported by a great ministerial team and we will work tirelessly to deliver on all of these areas, which are vital for the future success of our country." The work of the new department brings together responsibilities for industrial strategy, energy, business, consumers, employees, sci- ence, innovation, research, and climate change. DEFra Andrea Leadsom, environment secretary. Leadsom was elected as Conservative MP for South Northamptonshire in 2010 and served on the Treasury Select Committee from July 2010 until May 2014, and on the Public Accounts Committee from May 2014 until March 2015. She then served as economic secretary to the Treasury from April 2014 until May 2015, and energy minister from May 2015 until July 2016. George Eustice, minister of state for farming, food and the marine environment. Eustice was appointed farming minister on 11 May 2015 and continues in this role following the reshuffle. He was elected to the Commons as MP for Camborne and Redruth in 2010, and served on the EFRA select committee for five years before being appointed to Defra. Thérèse Coffey, parliamentary under secretary. The Suffolk Coastal MP was elected in May 2010 and served as deputy leader of the House of Commons from May 2015 until July 2016. She served on the culture, media and sport committee until she was appointed parlia- mentary private secretary to Michael Fallon, minister for business and energy. Lord Gardiner of Kimble, parliamentary under secretary. Lord Gardiner was appointed parlia- mentary under secretary at Defra in July 2016 and is the Lords spokesman for Defra. Who's who Hurd James Norman Department for Business, Energy & Industrial Strategy Department of Energy & Climate Change Department for Environment, Food and Rural Affairs No change All departmental responsibilities All other responsibilities Skills Department for Education Department for Business, Innovation & Skills DEparTMENTal rEOrGaNisaTiON

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