Kingston and Surbiton MP Edward Davey has denied being disappointed he was handed a junior post in the department of business, innovation and skills (BIS) in the new Conservative Liberal Democrat coalition government.

Mr Davey, who was Lib Dem shadow foreign secretary before the election, will work with business secretary Vince Cable, taking responsibility for employment, consumer affairs, the post office, social enterprises and insolvency.

Writing on Twitter, Conservative blogger Iain Dale said: “Ed Davey will be a Parl Under Secretary at BIS. What a humiliation for him. I think John Hayes will be his line manager. ROFL [rolling on floor laughing].”

Mr Davey said: “Iain Dale has long been a right wing acerbic commentator so I know I take his comments with a large barrel full of salt.

“If you know why you have been put somewhere and you agree with that reason you have to smile.”

Mr Davey’s position was not confirmed until Friday, May 14, two days after the first Government appointments were announced.

The MP, a former management consultant and Treasury spokesman, said: “I am absolutely delighted. To work with Vince in one of the key ministries takes me back to a portfolio I have always been interested in.

“Some of the issues are things I have studied and thought about and debated about before. I could not be happier.”