Formed as a result of the merger of the Board of Trade and the Ministry of Technology it also took over the responsibilities for monopolies and mergers from the Department of Employement. In 1974 the department's responsibilities for energy production were transfered to the newly created Department of Energy.

After the 1974 election the department was split into the separate departments for Trade, Industry and the Department of Prices and Consumer Protection. The departments of Trade and Industry were eventually re-united in 1983 with the Department of Energy becoming part of the department in 1992.

The department continued until it was disbanded in 2007 with the creation of the Department for Business, Enterprise and Regulatory Reform.