Neil O’Brien is leaving Policy Exchange to become George Osborne’s new SpAd tasked with developing the next generation of policies that will in all likelihood see their way into the Tory manifesto in 2015. Treasury sources say that the Chancellor likes his policy instincts and his style.

Policy Exchange is like a finishing school for Tory SpAds, in the way that the old Conservative Research Department used to be, alumni include Nic Boles. Other ministers like Gove and Maude were active in the organisation in opposition. Downing Street and ministries have often recruited people like James O’Shaughnessy and Sean Worth who were associated with the think-tank.

David Skelton will be taking the helm at the think-tank in the interim until a new director is appointed. It is a plum job and competition will be fierce…