Newly appointed communities secretary Sajid Javid has outlined devolution and boosting home ownership as his top priorities.
The former secretary of state for business, innovation and skills essentially switched roles with Greg Clark, who has been chosen to head the revamped Department for Business, Energy and Industrial Strategy.
Mr Javid said: 'I am proud to lead a department that is at the heart of this Government’s plan for Britain, and dedicated to improving opportunities for people across the country.
'My priorities are to build more homes and increase home ownership, devolve powers to local areas and help communities deliver excellent public services.'
Local Government Association chairman Lord Gary Porter claimed the reshuffle was a ‘good thing for local government' and said he was 'happy for Greg getting a promotion'.
He told The MJ: 'We now need to work to build a similar relationship with Sajid.
‘I don't get the sense the agenda is about to change.
'Sajid is ambitious and he will want to succeed and do a good job.'
He added that Mr Hammond would be supportive of devolution in the role of chancellor.
New Local Government Network director Simon Parker refuted claims that the Northern Powerhouse and devolution agendas would founder without Osborne and Clark.
He said there was now ‘potential’ for Mr Clark to put local government at the heart of an 'expanded industrial policy'.
He tweeted that he was ‘convinced' that Mr Clark's appointment to a revamped business department was ‘interesting’ and claimed the move suggested a ‘continuing focus on economic devolution to cities’.
Marcus Jones will continue as local government minister while Andrew Percy takes on the Northern Powerhouse brief from James Wharton, who has become Parliamentary Under Secretary of State at the Department for International Development.
Chair of the all-party parliamentary group on local government, Heather Wheeler, becomes an assistant government whip.
Department for Communities and Local Government minister Mark Francois has been appointed to conduct a review into the use of reserves in the Army.
Prime minister Theresa May made a bold start to her premiership with a radical overhaul of her government, which saw Boris Johnson take charge of the Foreign Office, replacing Philip Hammond.
Mr Hammond has been promoted to chancellor after George Osborne was kicked out of number 11 – his home for six years.
It's been a privilege to be Chancellor these last 6 yrs. Others will judge - I hope I've left the economy in a better state than I found it.— George Osborne (@George_Osborne) July 13, 2016
In total, nine key figures from the Cameron era were confined to the back benches, making it one of the most ruthless reshuffles in more than half a century.
Michael Gove – whose leadership hopes were thwarted after he brutally turned on Boris Jornson, his Brexit ally – has lost his job as justice secretary, a role that has been taken by Liz Truss.
Former international development secretary Justine Greening has replace education secretary Nicky Morgan, who yesterday unveiled a review into local government’s role in education and child safeguarding.
Disappointed not to be continuing as Education Secretary & Min for Women & Equalities - two wonderful roles it's been a privilege to hold— Nicky Morgan (@NickyMorgan01) July 14, 2016
Ms Morgan's departure has put stoppers on her controversial whitepaper and sparked questions about local government's role in education and children's services.
Amber Rudd has taken May's place as home secretary, David Davis has been named the new Brexit secretary and Liam Fox has been chosen to lead the new Department for International Trade.
Chris Grayling, who chaired May's campaign, has been appointed secretary of state for transport. He has replaced Patrick McLoughlin, who has become Conservative chairman.
Stephen Crabb has resigned as work and pensions secretary, claiming it was 'in the best interests' of his family. Damian Green has been selected to replace him.
Andrea Leadsom, who just days ago shocked the nation by bailing out of the Conservative leadership race, has been appointed enrironment secretary.
Jeremy Hunt will continue as health secretary, despite early rumours he would be moved elsewhere.
He tweeted: 'Reports of my death have been greatly exaggerated... Thrilled to be back in the best job in government.'
Croydon Central MP Gavin Barwell MP has been appointed housing and planning minister, replacing Brandon Lewis, who becomes minister for policing and the fire service at the Home Office.
Theresa May's cabinet
Prime minister – Theresa May
Chancellor – Philip Hammond (Formerly George Osborne)
Foreign Office – Boris Johnson (Formerly Philip Hammond)
Cabinet Office – Ben Gummer (Formerly Oliver Letwin)
Home Office – Amber Rudd (Formerly Theresa May)
Defence – Michael Fallon
Exiting the European Union – David Davis
International trade – Liam Fox
Health – Jeremy Hunt
Education – Justine Greening (Formerly Nicky Morgan)
Justice – Liz Truss (Formerly Michael Gove)
Communities and Local Government – Sajid Javid (Formerly Greg Clark)
Business, energy and industrial strategy – Greg Clark (Formerly Sajid Javid)
Work and pensions – Damian Green (Formerly Stephen Crabb)
Transport – Chris Grayling (Formerly Patrick McLoughlan)
Environment, food and rural affairs – Andrea Leadsom (Formerly Liz Truss)
International development – Priti Patel (Formerly Justine Greening)
Culture, media and sport – Karen Bradley (Formerly John Whittingdale)
Scotland – David Mundell
Wales – Alan Cairns
Northern Ireland – James Brokenshire (Formerly Theresa Villiers)
Leader of the Commons – David Lidington (Formerly Chris Grayling)
Chairman – Patrick McLoughlan (Formerly Lord Andrew Feldman)
Chief whip – Gavin Williamson (Formerly Mark Harper)
Leader of the Lords – Baroness Evans (Formerly Baroness Stowell)