The chief executive of Islington LBC has landed a top Government role after being appointed new director of public services by the Treasury.

Helen Bailey will have overall responsibility in the Treasury for oversight of public spending on education and children, health, housing, communities and local government, and the UK's devolved countries and regions. This represents a total of over £250bn of public spending a year.

‘I am delighted to take on this challenging opportunity and I look forward to bringing my practical experience of Islington to delivering public services in this strategic role,' she said. John Kingman, second permanent secretary, welcomed the appointment and said Ms Bailey had a strong track record of experience of public services at the ‘sharp end'.

Ms Bailey, who has been chief executive at Islington for six years, became embroiled in a controversial Standards Board investigation over her appointment, which cost more than £1m and lasted over three years.

The Standards Board was forced to apologise to Ms Bailey along with council leader Steve Hitchins and four of his colleagues who were accused of inappropriately appointing her.

Ms Bailey becomes the second council chief executive to take a central government post in recent months. Sir Bob Kerslake, chief executive of Sheffield City Council, is to head up the new Homes and Communities Agency (HCA), which is set to open for business on 1 April 2009.

The agency will be key to delivering the three million new homes by 2020 pledged by the Prime Minister.