LOCOG chief executive Paul Deighton will become Commercial Secretary to the Treasury tasked with taking forward the National Infrastructure Plan.

Deighton will start his new role in January with the aim of getting the Government’s planned £50bn infrastructure push moving by boosting private funding.

The ex-Goldman Sachs banker will take a seat in the House of Lords and report directly to Chancellor George Osborne.

David Cameron said: “I am delighted that one of the most talented leaders Britain has is joining the Government. His appointment proves this Government means business in terms of delivering infrastructure projects and economic revival.”

Deighton said: “Over the last seven years I have seen extraordinary British companies and incredibly talented British people deliver on the building, staging and hosting of the London 2012 Games.

“The public/private sector collaboration in delivering these Games has been vital to their success. I am delighted to accept the Prime Minister’s and Chancellor’s offer to apply this experience and what we have learnt to the broader UK economy.

“I very much look forward to taking on my new responsibilities in January 2013.  In the meantime my entire focus is on delivering a fantastic Paralympic Games that continues to showcase great sport and the best of Britain to the world.”

During the Cabinet reshuffle construction minister Mark Prisk was moved to become housing minister.

Prisk replaces Grant Shapps who becomes Conservative party chairman.

Mark Prisk takes over at housing

Shapps will attend cabinet meetings as a minister without portfolio.

A new construction minister will be confirmed shortly with former backbencher Michael Fallon among the favourites for the post.

Michael Fallon expected to take construction among other ministerial duties

Transport secretary Justine Greening, a high-profile opponent of building a new runway at Heathrow, has moved to international development with her former role now filled by ex-Chief Whip Patrick McLoughlin.

Patrick McLoughlin faces decisions over third runway at Heathrow and HS2 route north of Birmingham