Sir David Cooksey, one of the founding fathers of venture capitalism, has been appointed as Chairman of UK Financial Investments Limited (UKFI), the Government body set up to decide how and when to sell the taxpayer's £70 billion stake in Lloyds Banking Group and Royal Bank of Scotland.

The announcement of Sir David's role was made by Chancellor of the Exchequer Alistair Darling, who said: "As one of Britain's leading businessmen, Sir David combines hands-on financial expertise with a thorough understanding of the needs of businesses throughout the country. I am delighted that he has agreed to take on the role of Chairman of UKFI, looking after the investments we have made in the banks".

Sir David Cooksey said: "I am pleased to be to taking on this important and challenging role. The taxpayer has made a substantial investment in the banks in order to preserve financial stability, and I will be focused on protecting the value of those investments and disposing of them over time".

The Chancellor also expressed his thanks to Glen Moreno, who has served as Acting Chairman of UKFI since Sir Philip Hampton moved from UKFI to become Chairman of the Royal Bank of Scotland in January. Sir David's appointment will take effect from 1 August.