UTILITIES group Kelda has announced a shake-up of its board, appointing a deputy chief executive charged with focusing on the future of its Yorkshire Water subsidiary and driving Kelda's non-core disposal programme.

The move will see current finance director James Newman take on the new position of deputy chief executive.

His responsibilities will include implementing the group's "strategic changes" which include identifying a new structure for Yorkshire Water.

This comes just three weeks after Kelda's plans to spin off Yorkshire Water into a separate, mutual company were rejected by watchdog Ofwat.

Sir Ian Byatt, the director general of Water Services, said Kelda's proposals failed to set out clearly how customers would benefit.

Mr Newman's tasks will also include implementing Kelda's disposal programme, announced in June, which will see the group seek buyers for its chemical waste business, its environmental and food testing company and its renewable energy business.

Selling these businesses will increase the company's focus on its water and waste businesses.

John Napier, executive chairman, said: "James has played an important role in the company and has a major part to play in taking forward the future strategy of the group."

Other changes include the appointment of John O'Kane, who has been finance director of Yorkshire Water, as finance director of the group.

And Kevin Whiteman, managing director of Yorkshire Water, will join the board of Kelda as an executive director.