David Willetts, the universities and science minister, announced the appointment today.

The government is pursuing plans to sell the SLC¡¯s pre-2012 loans, with banks and pension funds among potential buyers.

Mr Brodie retired in July 2013 from the role of vice-chairman of UBS Investment Bank.

Besides his Sussex role, he is chairman of the Chelsea and Westminster Health Charity, an NHS charity supporting the Chelsea and Westminster Hospital.

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Mr Willetts said Mr Brodie ¡°brings with him a wealth of experience at the highest levels from across the public, private and higher education sectors. His appointment will provide support and leadership to the SLC as it embarks on a major programme of transformation, replacing its ageing core ICT systems and fully embracing digital technologies to improve radically the way it delivers services to customers.¡±

Mr Willetts said he also wanted to extend his ¡°deepest appreciation¡± to Dame Glynis Breakwell, the University of Bath vice-chancellor, ¡°for her work and commitment over the past three months as the interim chair of the SLC¡±.

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Ed Smith, the University of Birmingham pro-chancellor, had stepped down as chair of the SLC in the autumn.

The announcement comes amid a heated political row over claims Downing Street has ¡°politicised¡± quango appointments by pushing out non-Conservatives. It follows comments by Baroness Sally Morgan, whose term as Ofsted chair is not being renewed by the government.

The Department for Business Innovation and Skills said in a press release on Mr Brodie¡¯s appointment that in accordance with the Nolan principles on standards in public life ¡°there is a requirement for appointees¡¯ political activity (if any declared) to be made public¡±. It said Mr Brodie ¡°has not been involved in any political activity in the last five years¡±.

john.morgan@tsleducation.com