British Chancellor of the Exchequer, Mr Gordon Brown, yesterday appointed the first two members of his US-style Council of Economic Advisers. Mr Chris Wales, a City accountant, and Mr Paul Gregg, a labour market economist, will work alongside civil servants giving advice to the Chancellor.

The CEA will act as the replacement of the Panel of Independent Forecasters - disbanded by Mr Brown - which was set up by former Chancellor Kenneth Clarke to give advice on economic policy.

Under its terms of reference, the CEA will "advise the Chancellor on the design and implementation of policies for the achievement of the Government's economic objectives".

Mr Gregg is a senior research associate at the London School of Economics' Centre for Economic Performance, where his work has included the study of the dynamics of the British labour market. He will carry on there as a part-timer.

He worked at Britain's National Institute for Economic and Social Research for seven years before joining the LSE in 1995.

Mr Wales gives up his job as tax partner at Arthur Andersen for whom he has worked in Britain and Sweden. He has wide experience of British and international tax issues.