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Months of speculation have ended with the appointment of the government's housing chief as the new CLG permanent secretary – and a £50,000 pay cut. The appointment of Sir Bob Kerslake, head of the Homes and Communities Agency and former chief executive of Sheffield City Council, was confirmed on Monday. The department also revealed his salary will be £170,000 – down from his basic wage of £220,000 at the HCA and £15,000 less than his predecessor. It had been a point of principle for communities secretary, Eric Pickles, that the replacement for Peter Housden, who moved to become Scotland's permanent secretary, would have their pay reigned in. Sir Bob will be tasked with steering the department through the aftermath of next month's Comprehensive Spending Review and developing the localism agenda. A senior CLG spokesman gave The MJ a glowing account of why Sir Bob had seen off the other candidates: ‘He has an impressive track record in local government. He's a man who has all the right credentials to do the job. ‘He has the credibility to engage with chief executives and council leaders because he understands the job. We've got to be engaged with local government.' His appointment will be interpreted as a softening of stance by Mr Pickles who has made clear he wants to abolish the separate roles of council leader and chief executive. Cllr Richard Kemp, Liberal Democrat leader at the LGA, also backed the decision: ‘Sir Bob has a massive experience of delivering local democracy on the ground. As chief executive he showed flair and innovation in delivering enhanced council services. ‘He is a person local government can do business with and his appointment will assist with creating stronger links between central and local government.' Cabinet secretary, Sir Gus O'Donnell, said: ‘He will bring a wealth of experience and credibility to the role, driving forward the new government's agenda for devolution of power and autonomy to local councils and neighbourhoods. Personally, I would like to thank Irene Lucas, who has done a tremendous job leading the department as acting permanent secretary.'

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WHITEHALL

New job and pay cut for Kerslake

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