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Labour general secretary U-turn Labour general secretary U-turn
(about 5 hours later)
The Labour Party is to begin a new process to appoint a general secretary after the man selected for the role decided not to take the position.The Labour Party is to begin a new process to appoint a general secretary after the man selected for the role decided not to take the position.
City fund manager David Pitt-Watson, 51, who was thought to be Gordon Brown's favoured candidate, was recruited to the post in March.City fund manager David Pitt-Watson, 51, who was thought to be Gordon Brown's favoured candidate, was recruited to the post in March.
But the party has now said: "David has decided in the interests of the party not to take up the post." But Labour has now said: "David has decided in the interests of the party not to take up the post."
It said steps would be taken to make an appointment as soon as possible.It said steps would be taken to make an appointment as soon as possible.
Former general secretary Peter Watt resigned last November after admitting he knew businessman David Abrahams was donating money to Labour using other people's names.
'Significant delays'
The 37-year-old former nurse, who had been in the job since 2005, told Labour's ruling National Executive committee he was not aware he had broken the rules.
On his appointment, NEC chairman Dianne Hayter hailed Mr Pitt-Watson as "a great asset to the party in terms of political judgment and organisational management".
The NEC will now start the process to make a new appointment and getting a permanent general secretary in post as quickly as possible Dianne HayterNEC
However, a Labour Party press release said arrangements that needed to be made for Mr Pitt-Watson to take up his position had not been possible "without significant further delay in the post being filled".
Ms Hayter said: "It is unfortunate that the necessary arrangements for David to join the Labour Party as general secretary could not be completed and we are grateful for the exhaustive efforts made by him and others to this end.
"The NEC will now start the process to make a new appointment and getting a permanent general secretary in post as quickly as possible."
Mr Pitt-Watson has worked in the City since a two-year stint as Labour's assistant general secretary, responsible for finance, ended in 1999.
He had been expected to step down as chairman of Hermes Equity Ownership Services. Hermes is a Northern Rock shareholder.
In the meantime, Labour official Chris Lennie will continue as the party's acting general secretary.