Top job for Treasury mandarin

John Major's former press secretary is to be the new Permanent Secretary at the Treasury, one of the top jobs in Whitehall.

Gus O'Donnell succeeds Sir Andrew Turnbull, who takes over as Cabinet Secretary and head of the Home Civil Service later this year.

Chancellor Gordon Brown said he was "delighted" with Mr O'Donnell's appointment.

He said Mr O'Donnell had been a "first rate" managing director of macroeconomic policy at the Treasury, where he was guardian of the five economic tests for joining the euro.

Brown 'delighted'

Mr O'Donnell first joined the Treasury as an economist in 1979.

In 1989 he became John Major's press secretary, when Mr Major was made Chancellor.

When Mr Major became prime minister the following year, he took Mr O'Donnell with him to Number 10 where he remained until 1994, before returning to the Treasury.

Despite his close links with Mr Major, Mr O'Donnell became a key figure in Chancellor Gordon Brown's team of senior officials.