Mr Sherwood was Chief Whip, but now moves to a new Cabinet position replacings Jacob Rees-Mogg, who moves on to become Minister for Brexit Opportunities.
Mr Spencer said: “I am delighted to have been appointed Lord President of the Council, and Leader of the House of Commons in Her Majesty’s Government.
“I look forward to championing Parliament, the role of the House of Commons, and its members on the floor of the House.
“Most importantly, I will continue to support and stand up for Hucknall at every step along the way.
“It is a particular privilege to serve as Lord President of the Council in Her Majesty the Queen’s Platinum Jubilee Year.
"I am extremely grateful for her lifetime of service, and it is humbling to be able to serve as Lord President of Her Privy Council.”
Business
Mr Spencer’s main role is organising Government business in the Commons by working closely with new Chief Whip Chris Heaton-Harris.
He will also inform the Commons every Thursday about the business scheduled for the following week and usually provisional business for the week after.
He can also deputise for the Prime Minister, either at Prime Minister’s Questions, or for formal duties.
And after his first day in his new role, he said: “It’s been a busy first day on the job as Leader of the House of Commons.
"I have been working hard to ensure we can deliver on our promises to the British people and my constituents in Sherwood.”
The changes come after the Government was criticised in Sue Gray’s report into the lockdown party allegations and the Metropolitan Police announced it was investigating the claims.
Mr Spencer himself has been the subject of controversy after former minister Nusrat Ghani claimed he said her ‘Muslimness’ was a reason for her sacking back in 2020.
He has also been accused of intimidation by MPs wanting to oust Mr Johnson from office.
The BBC has also reported some MPs have expressed concerns about Mr Spencer’s new office, which plays a key role in upholding standards of behaviour in the Commons, when he is reportedly being investigated himself after Mr Johnson announced an inquiry into the claims made by Mrs Ghani.
Mr Spencer, however, has always strongly denied all the accusations levelled at him.