Timms takes over at HMRC

Former Treasury Number Two Stephen Timms has returned to the department to take charge of HMRC.

He comes back as financial secretary to take over the taxation brief vacated by Jame Kennedy, who is to become minister of state at the slimmed down Department for Environment, Food and Rural Affairs.

Millionaire chairman of the Guardian Media Group Paul Myners will be elevated to the peerage to become financial services secretary in charge of the city, financial services and to tackle the current credit crunch crisis.

A former chairman of Marks and Spencers and Gartmore Investments the 60-year-old is a close friend of Gordon Brown and was one of the few people allowed to donate to his leadership campaign - to the tune of £12,700.

Mr Timms - previously a cabinet minister as chief secretary to the Treasury - has been number two at the Department for Work and Pensions until last week's government resuffle.

Chancellor Alistair Darling and Treasury chief secretary Yvette Cooper keep their jobs while European trade commissioner Peter Mandelson - also to be made a Lord - becomes business, enterprise and regulatory reform secretary in place of John Hutton who goes to become Defence secretary.

Ian Pearson become Economic Secretary to the Treasury - with a joint responsibility for DBERR - while new immigration minister Phil Woolas, who will work mainly for the Home Office, gets a Treasury role because of Customs and Excise's role in the new Borders Agency.

Angela Eagle remains exchequer secretary. Former Treasury minister Kitty Ussher goes to the Department for Work and Pensions.