I am a great admirer of Iain Duncan Smith, a man of decency and integrity

Sir Stanley Kalms

The news was welcomed by Tory leader Iain Duncan Smith.

He said: "Sir Stanley has been a long-time supporter of the Conservative Party and successive Conservative leaders and he understands and shares our values and beliefs.

"He is also one of Britain's most successful businessmen and is highly respected in industry and the City."

Mr Duncan Smith also had words of praise for Lord Ashcroft, whose tenure in the role was marred by controversy over his financial affairs.

Portillo backer

Sir Stanley was a high-profile backer of Michael Portillo's failed bid to become Tory leader after the resignation of William Hague in the wake of the general election.

Commenting on his appointment he said he was delighted to accept the job.

"I am a great admirer of Iain Duncan Smith, a man of decency and integrity. He is also a great patriot who will always defend the British national interest."

Lord Ashcroft attracted controversy

BBC News political correspondent Mark Mardell said Conservatives would be "delighted" at the appointment of one of the driving forces behind anti-euro pressure group Business for Sterling and someone less likely to generate adverse media coverage.

In September 2002, Sir Stanley is stepping down from the helm of Dixons - he is currently chairman - and will take the post of president.

In July he was one of several high-profile businessmen to lend his name to a letter to the Times newspaper which bore the heading 'Portillo is the right leader for Britain and for business'.

Other signatories included Lord Bell of Chime Communications and Lord Sainsbury, the former chairman of the supermarket empire.

The letter said that the business leaders wanted the Conservative party to "get its act together".

"We are fed up with a Labour government that has laden business down with extra red tape and stealth taxes," read the letter.

Peerage

Lord Ashcroft's time as Tory treasurer was praised for leaving the party in "better shape financially than it has for many years".

Michael Ashcroft was recommended for a peerage by then Tory leader William Hague.

At the time, Tory former prime minister Sir Edward Heath described his peerage as "a disgrace".

Tory former Lords Leader Viscount Cranborne described the conditions attached to it as "an affront to the dignity and standing" of the party and parliament.

Particularly controversial was Lord Ashcroft's connection to Belize, which he represented as the country's ambassador at the United Nations.