Blair's choice of Cabinet Secretary hints at Brown handover

One of Gordon Brown's right-hand men is to become the most powerful civil servant in Whitehall, fuelling speculation of a smooth handover of power from Tony Blair to the Chancellor.

Treasury permanent secretary Sir Gus O'Donnell was picked by Tony Blair to take over the ?220,000-a-year post of Cabinet Secretary from next month.

The choice

- from a field of four civil service mandarins - will fuel speculation that the Prime Minister is preparing to ease the way for his Chancellor to take over at No10 when Mr Blair retires before the next election.

Sir Gus, 52, is seen as a trusted go-between who could

pre pare No 10 for the expected arrival of Mr Brown, the clear favourite to succeed as premier.

The economist served at No10 as press secretary to John Major between 1990 and 1994, a period which included the Black Wednesday fiasco. A popular figure with officials and MPs, he is regarded as shrewd and unstuffy. He joined the Treasury in 1979, catching Mr Brown's eye when Labour came to power.

Mr Blair said Sir Gus had a "distinguished record of achievement" in Whitehall.