Boris hires Mr Kwit-Fit

Tim Parker, one of Britain's most successful businessmen, will be in charge of the day-to-day running of City Hall.

His appointment is a major coup for Mr Johnson, who will benefit from his wide-ranging corporate experience and financial acumen.

One of the new Mayor's key election pledges was to cut waste and bureaucracy.

Mr Parker, 52, is known as a dynamic leader who has turned around a string of flagging companies over his long business career. He transformed the AA, Kwik-Fit, Clarks and Kenwood and gained public sector experience at the Treasury and during his time on the board of the Audit Commission.

However, his appointment will generate concern at the GLA, Transport for London and the Met Police Authority as he is known for axing jobs. He will also become chairman of TfL - and its £6.5billion budget - making him one of London's most powerful figures.

Mr Parker, whose official title will be First Deputy Mayor, will also be chief executive of the GLA Group.

He said: "I've spent my career taking over struggling companies and making them strong. I see wonderful opportunities to transform the infrastructure of London and deliver better services to Londoners.

"Throughout my business career, I have been accountable to exacting shareholders. In my new role, my shareholders will be the taxpayers of London."

Mr Parker will be unpaid apart from a £1 nominal salary and will step down from his business roles to avoid any conflicts of interest.

The Mayor today said: "I'm thrilled he's agreed to take the position and am grateful that he's agreed to do so effectively for free." The appointment will prompt suggestions the Tory party lacks confidence that Mr Johnson can do the job alone. Mr Johnson had previously said he would chair TfL himself after he was advised that with its fare-setting powers the post was best held by the Mayor.