RESIGNATION OF CHIEF ECONOMIC ADVISER TO THE TREASURY

Following his selection as the Labour Party’s Prospective Parliamentary Candidate for Normanton last night, Ed Balls, Chief Economic Adviser to the Treasury, this morning submitted his resignation from the Treasury.

Commenting on Ed Balls’ resignation, the Chancellor said:

“Ed has been a close colleague of mine for the last ten years and I want to thank him for the great contribution he has made to the Treasury's work over the last seven, first as economic adviser and for the last five years as Chief Economic Adviser. He has played a central and decisive role in developing and implementing policies to achieve economic stability and record levels of employment, to increase funding for public services and to tackle poverty in Britain and abroad. I know he has a great contribution to make in the future.”

Permanent Secretary to the Treasury, Gus O’Donnell said:

“I would like to thank Ed for his outstanding contribution to the Treasury over the past seven years. He has had an enormous and positive impact on the department and its thinking which will continue to influence us in the future. He has also been a great colleague to work with and will be missed throughout the Treasury.”

Mr Balls said:

"It has been a privilege to serve this government and this Chancellor of the Exchequer at the Treasury since 1997. I would like to thank Gordon Brown, Gus O'Donnell and all my colleagues for everything they have done over that time. I have been constantly in awe of the professionalism, talent and dedication to public service of the Treasury civil servants and political team that I have worked with in the important work the Treasury has done over these years."

Gus O’Donnell has today appointed Michael Ellam to the new post of Director of Policy and Planning. Mr Ellam will have responsibility for short to medium-term coordination of policy, working closely with Ed Miliband who, as Chairman of the Council of Economic Advisers will have responsibility for the coordination of long-term policy.

Notes to Editors

1. Ed Balls joined the Treasury in May 1997 as Economic Adviser to the Chancellor. In October 1999 he was appointed Chief Economic Adviser to the Treasury. At the request of Sir Graham Hall, he will continue to serve as a member of the Northern Way Taskforce to which he was appointed as the personal representative of the Chancellor and the Deputy Prime Minister.

2. Ed Miliband joined the Treasury in May 1997 as Special Adviser to the Chancellor. He was on sabbatical, teaching at Harvard University from July 2002 to February 2004. On return from Harvard, he was appointed Chairman of the Council of Economic Advisers, as announced in HMT Press Notice 02/04.

3. Michael Ellam is currently the Head of the Performance and Efficiency Team in the Treasury’s Public Services Directorate. He has held a wide range of posts across a number of directorates in over 10 years at the Treasury, including Head of Communications and Strategy (2000-2003) and Private Secretary to the Chancellor (1994-96).

4. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.