Cabinet office minister, Baroness Morgan, is to replace Anji Hunter as head of government relations in Downing Street, it was announced on Friday.

Morgan was political secretary to the prime minister until the 2001 general election when, in the subsequent reshuffle, she was appointed Cabinet office minister and minister for women via a peerage.

The prime minister's spokesman said would continue to attend meetings at Downing street despite the move. "She is an extremely talented individual, has excellent judgment and is well-known as someone who has worked extremely closely with the prime minister in the past.

"People who know Sally know that she is someone who commands enormous respect among ministers, within Downing Street and most importantly with the prime minister. I think you can take it that this is the progression of something that has been in the prime minister's mind for some time," he said.

Shadow cabinet office minister Tim Collins responded angrily to the appiontment: "How entirely typical of this prime minister to replace one of Tony's cronies with another one of Tony's cronies".

"It seems to be double your money time at Downing Street. Anji Hunter has gone from £120,000 to over £200,000, and now Baroness Morgan has gone from £60,000 in the Cabinet Office to £120,000 a year for some nebulous job in Downing Street. With over 80 special advisers in the government already, perhaps Mr Blair would like to explain precisely what extra dimension Baroness Morgan will add to the Whitehall spin machine," he said.