Brown set to lose another bank aide

Gordon Brown looked set to lose another adviser today.

There were signals that Glen Moreno, currently representing taxpayers' interests in bailed banks, would not be confirmed in the post, following allegations he had links to tax avoidance.

The Treasury confirmed it was recruiting a permanent chair for UK Financial Investments, the body set up by Chancellor Alistair Darling to protect taxpayers' money invested in the stricken British banks.

Earlier this week it emerged that Mr Moreno was a former trustee for Liechtenstein bank LGT, which had been accused of facilitating tax evasion.

As acting chairman of the UKFI, Moreno was overseeing £37 billion of government shareholdings in RBS and Lloyds.

UKFI is also expected to take over government stakes in Northern Rock and Bradford and Bingley.

Mr Darling seemed to distance himself from Mr Moreno today by saying it was a temporary appointment.