PRIME Minister David Cameron has put the finishing touches to his Cabinet, with key jobs for his Liberal Democrat coalition partners.

As well as Deputy Prime Minister Nick Clegg, there were seats at the Cabinet table for Lib Dems Vince Cable and David Laws.

Mr Cameron’s key ally George Osborne was appointed Chancellor and former Tory leader William Hague also keeps his brief from opposition, becoming Foreign Secretary in the new Government.

One of the more surprising appointments was Theresa May, who becomes only the second female Home Secretary.

Mr Cable becomes Business Secretary and Mr Laws was appointed Chief Secretary to the Treasury, Mr Osborne’s second-in-command.

In that role former banker Mr Laws will carry a great deal of the burden for the public spending cuts required to reduce the UK’s record budget deficit.

Also confirmed by 10 Downing Street were Conservatives Andrew Lansley as Health Secretary and Michael Gove as Education Secretary.

Liam Fox was made Defence Secretary and Kenneth Clarke was made the Justice Secretary and Lord Chancellor.

Patrick McLoughlin, the Tory chief whip while they were in opposition, will carry on as the Government Chief Whip.

Mrs May, who will also be women’s minister, emerged as the first big Tory winner in the new administration.

She was promoted from shadow work and pensions secretary in opposition to become only the second woman, after Jacqui Smith, to be Home Secretary - one of the three major offices of state.

Mr Cameron has indicated that a further two Lib Dems are to take positions in his senior ministerial team.

It is understood that Mr Clegg’s chief of staff Danny Alexander will be Scottish Secretary, while reports suggest that former Lib Dem home affairs spokesman Chris Huhne may take the energy brief.

Sources confirmed that former Tory party leader Iain Duncan Smith would be the new Work and Pensions Secretary.

After losing the leadership in 2003, Mr Duncan Smith founded the Centre for Social Justice thinktank - whose report on “Broken Britain” has heavily influenced Conservative thinking on social policy.