Wilson had been impressed by the six-week experiment of a Minister for Economic Affairs in 1947, an office occupied by Stafford Cripps before he was appointed Chancellor of the Exchequer.

After a Conservative victory at the 1951 election, Winston Churchill also appointed a Minister of Economic Affairs, Arthur Salter, in the period 1951–52.

The DEA was to undertake long-term planning of the economy and industry, while the Treasury would determine short-term revenue raising and financial management.

Critics of Wilson's approach, including Douglas Jay, suspected the main reason for the Department was to appease George Brown, Deputy Leader of the Labour Party.

The (true) story told at the time, that Brown finally accepted the job while riding in a taxi with Wilson, tended to lend credence to this analysis.