Gordon Brown has re-structured business facing Government departments, affecting the Department for Trade and Industry (DTI), the Olympics and skills.
The DTI has been replaced by the Department for Business, Enterprise and Regulatory Reform (DBERR).
John Hutton will be Secretary of State for Business and Enterprise.
Tessa Jowell has been replaced by James Purnell at the Department for Culture, Media and Sport, although Ms Jowell with retain responsibility for the delivery of the Olympics in her new role overseeing the Government Olympic Executive (GOE), and will continue to report to Cabinet.
A new department – the Department for Innovation, Universities and Skills (DIUS) has been created.
Secretary of State for DIUS is John Denham, who said: “I am hugely excited by the challenges that lie ahead. The world is changing fast and Britain must keep on growing and changing to stay in front.
“It is thrilling to lead a department with the mission to ensure every person in this country has the opportunity to reach their full potential and highest ambitions.
“High quality skills are vitally important to achieve this ambition and we must strive to build a workforce able to compete in a highly competitive global market.
Ian Watmore is the first Permanent Secretary for the new Department.
The Construction Products Association welcomed the new Business, Enterprise and Regulatory Reform department.
Simon Storer, external affairs director, said: “The construction products sector has an annual turnover of £40 billion, and has a key role to play in the economic success of this country; in delivering infrastructure such as transport, schools, hospitals and housing without which economic prosperity cannot be achieved.
“Construction needs a strong and effective department in Whitehall that understands the challenges and opportunities facing industry and business in the UK. It is vital that in reaching policy decisions the impact on business is fully understood, and that these views are represented effectively in discussions across Whitehall.
“We are optimistic that the new Business, Enterprise and Regulatory Reform Department will fulfil this role effectively, and look forward to working with John Hutton, the new Secretary of State for Business and Enterprise, to achieve these goals.”