Liberal Democrat deputy leader Vince Cable is to serve as Secretary of State for Business, Innovation and Skills in David Cameron's new coalition Government.

The former Lib Dem Treasury spokesman, who shot to prominence due to his warnings over the global financial crisis as well as his ballroom dancing talents, was appointed to the post as Mr Cameron shaped his first Cabinet today.

Fellow Liberal Democrat David Laws was named as George Osborne's second-in-command at the Treasury, with Cabinet rank as Chief Secretary. In the position, the former banker will carry a great deal of the burden for the public spending cuts required to reduce the UK's record budget deficit.

Also confirmed by 10 Downing Street were Conservatives Andrew Lansley as Health Secretary and Michael Gove as Education Secretary.

Earlier in the day, Theresa May was named as Home Secretary, Liam Fox Defence Secretary and Kenneth Clarke was made the Justice Secretary and Lord Chancellor.

Liberal Democrat leader Nick Clegg is Deputy Prime Minister.

Patrick McLoughlin, the Tory chief whip while they were in opposition, will carry on as the Government Chief Whip.

William Hague keeps his brief from opposition, becoming Foreign Secretary in the new Government.

Mrs May, who will also be women's minister, emerged as the first big Tory winner in the new administration.

She was promoted from the shadow work and pensions secretary in opposition to become only the second woman, after Jacqui Smith, to be Home Secretary - one of the three major offices of state.

It was not immediately clear whether there would be a place around the Cabinet table for Chris Grayling who was the shadow home secretary prior to the election.

The appointments of Mr Cable and Mr Laws leave two places for Lib Dems unfilled at the Cabinet table. It is understood that Mr Clegg's chief of staff Danny Alexander will be Scottish Secretary, while reports suggest that former Lib Dem home affairs spokesman Chris Huhne may take the energy brief.

Sources confirmed that former Tory party leader Iain Duncan Smith will be the new Work and Pensions Secretary.