Business leaders in the Midlands last night reacted positively to Gordon Brown's cabinet shake up - but said he needed to back up his words with positive support for industry.

Alistair Darling's appointment as the new Chancellor has been broadly welcomed as a safe pair of hands while the renaming of the DTI as the Department of Business and Enterprise - headed by John Hutton - was generally warmly received.

The new Prime Minister's other move - to set up an independent committee of business leaders - was also seen as a step in the right direction, provided it did not descend into a talking shop.

The Business Council of Britain will be charged with examining the Government's performance in areas critical to the country's future wealth, and reporting to Parliament and the Government.

It will have the power to conduct its own reviews and set up special commissions in areas of particular concern.

It will also examine the Government's progress in improving the UK business environment and advising ministers on policies and priorities.

Chaired by a top industry executive, its twice-yearly meetings will be attended by relevant Cabinet ministers.

Mr Brown said: "The council will comprise senior business leaders from a range of sectors, able to provide clear, independent advice on the reform priorities to enable business to compete in the global economy."

John Lamb, spokesman for Birmingham Chamber of Commerce, said the changes had to be backed by actions rather than just becoming talking shops.

He said: "Anything that helps business flourish in the UK is welcome, it doesn't matter what it is called.

"If the name change at the DTI is a rebooting of its business support functions in government, that is something to be welcomed.

"With regards to the Business Council, we still have to see the details, but we support the involvement of private enterprise and the business community which has a wealth of experience and expertise.

"If they are serious about drawing on these qualities, we would regard it as a good move, but we don't want it to become just another talking shop.

"It doesn't sound too dynamic, only meeting twice per year, but hopefully it will have some influence."

Peter Mathews, president of the Black Country Chamber of Commerce, agreed that actions not words were needed.

He said: "Including the word enterprise is a welcome move, but as always it will be deeds not words that count.

"We need to see exactly how the Government intends to foster a spirit of enterprise, enabling Britain to compete in the global marketplace.

"It's also good news that Gordon Brown intends to involve business leaders more actively in government.

"Previously, ministers have seemed to find it difficult to engage effectively with business."

The British Chamber of Commerce described Mr Darling's appointment as a safe pair of hands, a view which was shared by the CBI.

CBI director general Richard Lambert said: "Alistair Darling looks like the right choice. He had a good record at the Treasury as Chief Secretary.

"He took over Transport at a very difficult time and got an effective grip, and has shown during his time at DTI that he understands what makes a good economy. So he starts off with a number of points in his favour."

Richard Boot, chairman of the Institute of Director in the West Midlands, said the change of name from Department of Trade & Industry to Department of Business & Enterprise was less important than the need for results.

"We take a healthy and positively sceptical view of the name change but would emphasise that there is a job to be done, regardless of the sign above the door.

"We need a joined up and focused approach to tackling all the big issues including the burden of regulation and the skills gap, which is potentially a serious issue in the West Midlands."

The Prime Minister's establishment of a Department for Innovation, Universities and Skills, was also recognised.

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: "A commitment to business, enterprise and skills is something we very much applaud and is something for which we have been campaigning for some time."