The Labour party has appointed a new general-secretary after the sudden resignation of Peter Watt last year.

David Pitt-Watson was today named the party’s new head by the National Executive Committee.

He returns to prominence in the party after serving as assistant general secretary between 1997 and 1999.

The 51-year-old has a business background and advised the party on strategy, finance and operations.

It is believed he has the backing of the prime minister, who was reluctant to hand the party to a candidate with closer links to the unions.

Mr Pitt-Watson said he was “thrilled and delighted” to have been appointed to the “challenging and important role”.

“The Labour party is a fantastic organisation and I am looking forward to working with members, stakeholders and staff to achieve our objectives,” he said.

“My first priority is to build on the progress already made to get the Labour party ready to win a future general election. It is also to establish robust party structures and procedures in terms of finance and compliance to create stability for the organisation going forward.”

His predecessor Mr Watt is still the subject of a police investigation into illegal donations.

The former general-secretary resigned after it emerged more than £600,000 donated by north-eastern property developer David Abrahams, were incorrectly reported.

Mr Watt maintains he was unaware of the obligation to report the true source of the donations.