Ellam is the latest of several former New Labour figures appointed to government roles by Starmer.
Peter Mandelson, another No.10 communications chief, has been appointed as ambassador to the U.S., while ex No.10 chief of staff Jonathan Powell has been made national security adviser. Liz Lloyd, Blair’s former deputy chief of staff, has been given a job as director of policy delivery.
Recruitment for Ellam’s new Cabinet Office role started last year with applications closing on Dec. 8.
Brexit minister Nick Thomas-Symonds, who Ellam will work closely with, said he was “delighted” that the HSBC executive was “bringing his talents to the heart of government”.
“Michael’s experience at the highest levels of international finance will be a huge asset as we work to deliver economic growth on behalf of the British people, including through resetting our relationship with the EU,” he said.
In a statement, Ellam said: “I am delighted to have been appointed Second Permanent Secretary European Union and International Economic Affairs, and to return to the Civil Service after a decade in the private sector.
“I look forward to working with the Prime Minister, the Minister for EU Relations and others to deliver the government’s objectives on this important agenda.”