Mr Varney is stepping down from his role at MmO2
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The government has appointed the first chief of its newly merged Customs and Excise and Inland Revenue departments.
David Varney, the outgoing chairman of mobile phone firm MMO2, is to become executive chairman of the newly formed HM Revenue and Customs.
One of Mr Varney's first tasks will involve overseeing major job cutbacks.
Some 8,000 jobs will go at the Inland Revenue and 3,000 at Customs and Excise as a result of the merger, Chancellor Gordon Brown said.
Announcing Mr Varney's appointment, the chancellor told MPs: "Mr Varney is an outstanding business
leader with a first rate record proven across the private sector, with a reputation for good management and effective delivery."
Mr Varney has previously held executive posts at energy companies Shell and British Gas.
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