Business groups have given Gordon Brown the thumbs up for his first week at number ten by welcoming the introduction of the new Department of Business and Enterprise.

The new prime minister announced yesterday the formation of the Department for Business, Enterprise and Regulatory Reform (DBERR), which will assume many of the responsibilities of the Department of Trade and Industry (DTI).

Manufacturers’ organisation, the EEF, expressed satisfaction at the introduction of Better Regulation within the new government department saying it was ‘key to successful enterprise’.

“The simple abolition of the DTI was always a non-starter without something better in its place,” said Martin Temple, director general of the EEF.

“We now have a beefed-up department which retains essential elements of the old with the key addition of Better Regulation.”

The EEF said government re-organisation was a ‘welcome boost for the business agenda’ and welcomed John Hutton as the new secretary of state for the DBERR.

The British Chambers of Commerce (BCC) said the new department was a ‘signal of good intent from the government’.

“Hopefully this will build on the good work of the DTI and focus on fostering a spirit of enterprise and innovation in business,” said David Frost, director general of the BCC.

Frost said he hoped Hutton would ‘prove to be a champion of business’.

© Crimson Business Ltd. 2007