The Labour Party appointed an experienced businessman as its new general secretary on Monday, filling a post vacated in the wake of last year's furore over undisclosed loans.

Accepting the job, David Pitt-Watson, 51, promised to prepare Labour for the next general election and introduce robust procedures on party funding.

Pitt-Watson replaces Peter Watt, who was forced to resign in November after it emerged that property tycoon David Abrahams had donated 600,000 pounds to Labour through intermediaries, in apparent breach of electoral law.

"My first priority is to build on the progress already made to get the Labour Party ready to win a future general election," Pitt-Watson said in a statement.

"It is also to establish robust party structures and procedures in terms of finance and compliance to create stability for the organisation going forward," he added.

The revelations about Abrahams were the latest in a series of scandals over party funding to hit Labour, contributing to a slump in its opinion poll ratings and fuelling a public perception that sleaze is rife across British politics.

Pitt-Watson comes to the post with Labour trailing the Conservatives in opinion polls, although the Tories' lead has diminished in recent weeks.

Labour said Pitt-Watson is an experienced businessman who was also Labour's assistant general secretary in charge of finance between 1997 and 1999.

Diane Hayter, chair of the National Executive Committee, Labour's governing body, said his appointment comes at a critical junction.

"He is taking on this key role at an important time for the party, when we face the challenge of elections in London, Wales and England," she said in a statement.