Mr Hammond, who was elected in 1997, was initially a member of the Conservative shadow health team before going on to serve as trade and industry spokesman.

A former director of companies supplying medical equipment, he went to shadow the now-defunct Office of the Deputy Prime Minister in 2002 before being made shadow Chief Secretary to the Treasury in 2007.

He replaces Theresa Villiers who up until the general election had been the shadow Transport Secretary and is yet to gain a place within the the coalition Government's new cabinet.