BT boss quits for front benches

Carrier's share price falls after it reveals Ian Livingston has accepted call of duty from David Cameron

BT's share price has fallen more than three per cent on the surprise news that chief executive Ian Livingston is quitting for a ministerial role.

Livingston (pictured), who has helmed the carrier for five years, has agreed to take up a role in government as minster of state for trade and investment and will step down from his post and BT's board in September.

During his tenure – which coincided with a steady increase in BT's share price – Livingston axed more than 30,000 staff as part of a wider effort to cut costs at the carrier. He will join the House of Lords before taking up his new government role in December, replacing Lord Green.

BT chairman Sir Michael Rake claimed that current BT Retail head Gavin Patterson – who has been named as Livingston's successor – would be a fitting replacement.

"Ian has done a tremendous job in transforming BT," Rake added. "His decision to accept a government post demonstrates the sense of public service which many of us know to be characteristic. He leaves behind him a very capable team, one which will take forward the strategy that has served BT well and which lays out the path to further success."

Livingston said: ‘I am honoured to have been asked by the prime minister to take on the role of minister for trade and investment, with a remit of helping the growth of British companies and the country's future economic success.

"It has been an incredibly hard decision to leave BT at such an exciting time. However, the opportunities ahead and the strength of the management team that Gavin will lead mean that the company is in a great position.