Outgoing insolvency minister Edward Davey MP will be replaced by Norman Lamb MP, Downing Street has confirmed.
Davey has relinquished his position at the Department of Business, Innovation and Skills after being promoted to become Secretary of State for Energy and Climate Change.
And Lamb – who is currently MP for North Norfolk – will now fill Davey’s boots as Parliamentary Under Secretary of State at the Department for Business, Innovation and Skills.
It follows a tumultuous day for the government with former Energy Secretary Chris Huhne stepping down from office after being charged with trying to dodge a speeding offence.
Last week, Davey announced no changes would be made to the current pre-pack administration regime following a lengthy consultation process.
But incoming Lamb – who was formerly the chief parliamentary adviser to Deputy Prime Minister Nick Clegg – has already voiced his concerns about the current process.
Earlier this week, Lamb was quoted in regional newspaper the Eastern Daily Press in an article titled ‘Can pre-packs be stitch-ups?’
He reportedly said: “The concern is that this often can just become a stitch-up and it ends up as a fait accompli.
“You do not have a choice for a proper sale and the creditors can lose out.
“The challenge is how we clamp down on the potential abuse of it.
“It is recognising that they can sometimes be of value and recognising that also the mechanism can be abused.
“We have got to monitor this closely and any idea that people have about how we can cut out abuse would be very welcome.”