A delighted Andrew Smith was starting work in the Treasury today as Gordon Brown's deputy after being promoted to the Cabinet, writes Bill Jacobs.

Tony Blair told the Oxford East MP that he had done "an excellent job" in masterminding the New Deal to get the young jobless and long-term unemployed into work, but now was the time to move on.

The 48-year-old former Co-op worker has made it to the Cabinet after just 12 years as an MP.

Despite his elevation, he has kept his roots and the personal touch with his constituents - he still lives in Blackbird Leys and, unlike many of his colleagues, is happy to have his number listed in the phone book. Mr Smith takes control of the nation's purse strings as Chief Secretary to the Treasury - a job once held by John Major - and will be Mr Brown's number two, as he was in opposition.

The hard work will start today as he prepares to take control of the Government's comprehensive spending review, which will set departmental budgets for the next three years.

Mr Smith, whose wife Val is Lord Mayor of Oxford, will spend the next two months involved in tough negotiations with his Cabinet colleagues. He is one of two new ministers in Mr Blair's reshuffle, which saw Peter Mandelson brought back into the Cabinet as Northern Ireland Secretary, Geoff Hoon promoted to Defence Secretary and Mr Smith's predecessor as Chief Secretary, Alan Milburn, sent to the health department.

Mr Smith told the Oxford Mail: "I'm absolutely thrilled to be the new Chief Secretary to the Treasury. Oxford now has a Labour MP right at the heart of the Government.

"It will be my job to make sure that every penny of taxpayers' money is used effectively to provide the services people need. "As an MP I have benefited enormously from the expertise and ideas of my constituents."

Senior Labour figures welcomed his appointment, with the Prime Minister's official spokesman saying: "He has been responsible for the New Deal, and while Andrew Smith may not have the highest political profile, he has delivered."

The reshuffle follows the promotion of Defence Secretary Lord Robertson to be head of Nato and Health Secretary Frank Dobson's resignation to run for Mayor of London. Mr Blair sacked Cabinet "enforcer" Jack Cunningham, replacing him with former Northern Ireland Secretary Mo Mowlam.

Story date: Tuesday 12 October

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