YEOVIL MP David Laws has been named as a key figure in the new-look Government’s team to sort out the economy.

Mr Laws – who had been tipped to become Schools Secretary in the Conservative-LibDem coalition cabinet – has now been named as the Chief Secretary to the Treasury.

It is the second most senior ministerial position in the HM Treasury after the Chancellor of the Exchequer.

Mr Laws has been seen shaking hands with new Chancellor George Osborne outside the Treasury – no different to how LibDem leader Nick Clegg and the Prime Minister were seen congratulating each other outside No 10 earlier today.

Mr Laws responsibilities will include negotiating with departments about budget allocations, public sector pay, welfare reform, and procurement policy.

Prime Minister David Cameron has, meanwhile, handed the Schools Secretary job to Tory MP Michael Gove.

Mr Gove himself had been tipped for the position of Home Secretary – but that has gone to Theresa May.

The move to make Mr Laws a key member of the treasury team makes sense. He is a former investment banker and was quickly promoted to the LibDems’ treasury team and took on responsibility for spending commitments in the lead-up to the 2005 general election.

He then moved to work and pensions before, most recently, being handed the job of acting as LibDems’ spokesman on children, families and schools.

As soon as we get reaction from the Yeovil LibDem camp on Mr Laws' appointment - we will bring it to you here.