by Chris McLaughlin

LABOUR Party chiefs have given newly-appointed general secretary David Pitt-Watson an effective ultimatum to confirm he will take up the job or formally declare he is turning his back on it.

The move comes after two months of delay and confusion over whether the City businessman and former assistant general secretary will actually take up the post championed for him by Gordon Brown.

Mr Pitt-Watson has reportedly informed party officers that he has resigned from his post as chair of Hermes Equity Ownership but has not yet signed a contract with the party for the general secretary’s job.

Failure to sign up has sustained suspicions that he may not take up the post at all and that a potentially damaging announcement to that effect has been delayed until after the local and London elections.

Mr Pitt-Watson is understood to have been privately informed that a final decision is expected by the end of next week in order that he should be in place by the next meeting of the National Executive Committee on May 20.

NEC chair Dianne Hayter, who has played down the delay in the post being taken up, is understood to have told colleagues she remains “optimistic” that Mr Pitt-Watson will take up the job.

Mr Pitt-Watson has conveyed concerns about his personal financial liability, leading to the examination of a plan to turn the party into a limited company.

Some members of the NEC are canvassing a compromise in which responsibilities for finance and organisation would be split.

There are other concerns that Mr Pitt-Watson has already missed vital financial discussions, including the rescheduling of payment of large, controversial loans.