Apprentice star Sir Alan Sugar is to be appointed as Enterprise Tsar to Gordon Brown.

The former Amstrad boss will advise the government on business issues and help the nation out of the current tough times by speaking to small and medium-sized businesses.

Sir Alan, a long-standing friend of the Prime Minister, has been vocal in his support of the Prime Minister, who is reshuffling his Cabinet following the resignation of several Ministers. Sir Alan will not become a minister. Reports suggest he will be rewarded for his new role with a peerage.

Already a member of the Business Council for Britain, which advises on issues affecting enterprise and the economy, Sir Alan said the government lacked the input of people who have relevant first-hand experience. “They are what they are, they're Civil Servants. They've never actually been in business.” He added: “The recession makes enterprise more important than ever.”

He spent this morning doing television interviews about the Apprentice final but did not mention his new job.

"I am pretty sure that if it was as dire as you are making out he would have done the right thing," he said. "He is not going to step down and the reason for that is that he must have the support of the good people and of the right people."