Sir John Elvidge quits as permanent secretary to the Scottish Government

SCOTLAND'S most senior civil servant is to step down from his post, ending a seven-year spell that has been peppered with controversy and allegations of political bias.

Sir John Elvidge, the permanent secretary to the Scottish Government, will retire from his 185,000-a-year job at the end of June, after accruing a pension pot of 1.7 million.

He will walk away with a tax-free pension payment of 225,000 and an annual pension of 75,000, insisting he wished to allow his successor time to take charge before the Scottish Parliament elections next year.

His role is to be filled by Peter Housden, permanent secretary to the UK Department of Communities and Local Government.

Yesterday, Sir John insisted he had no immediate plans for his retirement, but Scottish Parliament insiders suggested he wished to make a dignified exit before a potentially difficult transition next year to a new Scottish administration that may be formed by Labour.

Sir John has been the subject of accusations from Labour members during the SNP administration. Lord Foulkes described the Oxford-educated mandarin as "Sir Humphrey" in a derogatory reference to the Yes Minister civil servant.

Last year, he found himself on the end of an outburst from Labour MSP Hugh Henry, who accused him of talking "bullsh*t" in evidence to the Public Audit Committee over the resignation of the head of Transport Scotland.

That row flared up again this week, after Mr Henry criticised the decision – rubber-stamped by Sir John – to grant the quango chief a 61,000 pay-off.

And in 2007, the 59-year-old was accused of a lack of impartiality by Labour and the Tories when he said he was working for a "separate government".

Yesterday, one senior opposition MSP said he believed Sir John sensed the likelihood of a new administration next year.

"He has, in the past, stuck his neck out on behalf of the SNP, and nailed his colours to the mast, so it might have been difficult for him to work with a new administration," they said.

But Sir John insisted his decision was to allow "continuity" as Holyrood struggled with budget cuts.

He said: "Leading the civil service supporting two Scottish Governments … has been a hugely stimulating and enjoyable role.

"It is a difficult job to leave but it calls for someone who can provide continuity of leadership before and after the Scottish elections next year and in supporting ministers in planning and delivering the response to the public expenditure changes which lie ahead."

The First Minister said he deserved "enormous credit" for his work.

Mr Salmond – who must rubber-stamp the decision made by the civil service on Sir John's replacement – welcomed Mr Housden, with a government source indicating he remained unconcerned by news that Scottish civil servants had been overlooked.

"The fact that, for the first time, this job will be filled by somebody who is already a permanent secretary shows the increased status that the role now has," they said.

New man started out as school teacher

PETER Housden has been the Permanent Secretary at the Department for Communities and Local Government since October 2005.

He began his career as a comprehensive-school teacher in Shropshire, before entering education management and eventually rising to become director of education at Nottinghamshire County Council in 1991.

By 1994, he had been elevated to council chief executive and in 2001, he left to take up a six-month secondment with the UK Audit Commission, before joining the Department for Education and Skills.

He is no stranger to controversy. In February, he openly questioned the judgment of then communities minister John Denham in pushing through a council reshuffle in the south of England at the cost of 400,000.

He has been criticised for receiving free trips to the opera and the Proms, and last year it was revealed he received an interest-free housing loan of 60,000, funded by the taxpayer, to help him move to London when he joined the Department of Education

Yesterday, Mr Housden, who will be employed at the lower end of a salary scale that ranges from 141,000 to 277,000, said of his new role: "I am genuinely excited by the challenge."