A Tory donor who set up a finance firm with Jacob Rees-Mogg has been quietly given a peerage and appointed as a trade minister, sparking fresh allegations of cronyism.
Dominic Johnson, who founded Somerset Capital Management with the now-Business Secretary in 2007, has previously rallied against the cap on bankers' bonuses, which was lifted by Chancellor Kwasi Kwarteng in his controversial mini-budget.
Labour immediately lashed out at the appointment, branding Mr Johnson - who has donated more than £250,000 to the party - a "crony party donor".
Mr Johnson has previously served as vice-chairman of the Conservative Party between 2016 and 2019.
Following his appointment, Shadow International Trade Secretary Nick Thomas-Symonds fumed: "After crashing the economy with unfunded tax cuts for the very wealthiest earners, and lifting the cap on bankers’ bonuses, it beggars belief that the Conservatives have appointed an unelected asset-fund manager to the Government - who just happens to be a crony party donor.
"As millions of working people face agonising choices about what essentials they can afford, Liz Truss - once again - shows she is not on their side."
A statement on the government's website said: “Dominic Johnson CBE was appointed a minister of state jointly in the Department for International Trade and the Cabinet Office on 2 October 2022.”
And confirming his peerage, the government said: "His Majesty has also been pleased to signify His intention of conferring a peerage of the United Kingdom for Life on Dominic Johnson CBE."
Mr Johnson has previously been outspoken in his opposition to the bonus cap for bankers - which was lifted by Chancellor Kwasi Kwarteng in his controversial mini-budget last month.
He wrote in the Financial Times that the rule - which barred companies from giving bonuses of more than 200% of their basic wage - was inflating salaries.
Mr Johnson said: We believe that only small business can genuinely provide these incentive links, but it has never been harder to run a boutique fund management firm.
"A bonus cap makes this situation even worse, since it means we have to pay higher fixed salaries."
