Deighton, 56, will take a seat in the House of Lords in order to take up his new post as Commercial Secretary to the Treasury, where he will have special responsibility for economic delivery.

Cameron announced the appointment as part of a Cabinet reshuffle which saw a significant promotion for Jeremy Hunt, who, as the Secretary of State for Media, Olympics, Culture and Sport, was the top-ranking Government official in charge of London 2012.

He has been named as the new Secretary of State for Health.

Cameron said the appointment of the Cambridge University economics graduate "proves this Government means business in terms of delivering infrastructure projects and economic revival".

Deighton, a former investment banker with Goldman Sachs, will officially take up the role in January when his contract with London 2012 finishes and will carry out the role in an unpaid capacity.

His job will be "bang heads together" to get economy going, according to a spokesman for Cameron.

Deighton will replace Lord Sassoon, who was appointed as the first Commercial Secretary to the Treasury in May 2010.

Deighton's responsibilities will include taking forward the National Infrastructure Plan, which was published last November and includes commitments to improve Britain's transport and broadband networks as well as steps to attract major new private sector investment.

Paul Deighton, pictured here with former Prime Minister Gordon Brown at the London 2012 Opening Ceremony, has been given the job of "banging heads together" to try to help Britain's economy recover

He will also be overseeing the new private finance initiative model and UK Guarantees scheme, where the Government is looking at under writing infrastructure schemes.

"I am delighted that one of the most talented leaders Britain has is joining the Government," said Cameron.

"His appointment proves this Government means business in terms of delivering infrastructure projects and economic revival."

Deighton was a surprise choice when he was appointed in December 2005 as chief executive of London 2012 after his wife spotted an advert for the job in The Economist and has been widely praised around the world for delivering one of the best Games in history.

"Over the last seven years I have seen extraordinary British companies and incredibly talented British people deliver on the building, staging and hosting of the London 2012 Games," said Deighton, whose personal worth is £95 million ($151 million/€120 million), according to the latest Sunday Times rich list.

"The public/private sector collaboration in delivering these Games has been vital to their success.

"I am delighted to accept the Prime Minister's and Chancellor's offer to apply this experience and what we have learnt to the broader UK economy.

"I very much look forward to taking on my new responsibilities in January 2013. 

"In the meantime my entire focus is on delivering a fantastic Paralympic Games that continues to showcase great sport and the best of Britain to the world."

After being booed by 80,000 people in the Olympic Stadium, Chancellor George Osborne will be hoping that Paul Deighton can help restore his popularity by getting the economy moving again

Deighton will report to Chancellor George Osborne, who was booed by the 80,000 crowd at the Olympic Stadium last night when he presented medals.

"This summer with the Olympic and Paralympic Games, Britain has shown the world it can deliver a world-beating project on time and on budget," said Deighton.

"As chief executive of its organising committee, Paul Deighton has played a critical role in that.

"So I am delighted he has agreed to join the Government to bring his experience and expertise to economic development infrastructure.

"Paul is a man who has shown he can deliver."

At the end of the Olympics last month, Cameron appointed London 2012 chairman Sebastian Coe as his Olympics legacy ambassador.

Coe will advise the Prime Minister on how best to secure the long-term benefits of hosting the Games, particularly focusing on the economic and business benefits from putting on such a successful Olympics.

Contact the writer of this story at [email protected]


Related stories
September 2012: Hunt rewarded for success of London 2012 with new Cabinet job