Mr Michael Portillo completed a sensational return to front-line Tory politics last night, replacing Mr Francis Maude as shadow Chancellor.
Mr Maude became shadow Foreign Secretary, while his predecessor in that post, Mr John Maples, was sacked, as was the former Conservative leadership challenger, Mr John Redwood.
Mr Portillo's was the key appointment in a reshuffle of a failing shadow cabinet which Mr William Hague desperately hopes will revive Tory fortunes with little more than a year to go until the next general election.
Mr Portillo, whose defeat in his London constituency of Enfield was one of the defining moments of Labour's 1997 victory, faces a daunting task in taking on the Chancellor, Mr Gordon Brown.
Mr Brown is widely credited with establishing New Labour's reputation for economic competence, and has an estimated surplus of some £9 billion with which to buttress Mr Tony Blair's hopes for a second term.
But the return of Mr Portillo as a recognised "big hitter" will also be seen as something of a personal gamble by Mr Hague. With his personal ratings still similar to those suffered by the former Labour leader, Mr Michael Foot, in the early 1980s, a strong performance by Mr Portillo might quickly renew speculation about his prospects of succeeding Mr Hague in the Tory leadership.
Mr Portillo, elected in the Kensington and Chelsea by-election in November, was last night stressing his loyalty to the party leader. "I'm delighted to be joining William Hague's team," he declared. "I am looking forward to the closest working relationship with William as together we battle for a lower tax burden and less interference in business. We want Britain competitive so as to provide good-quality jobs for the future."
Mr Hague described Mr Portillo as "a proven political heavyweight" and said Mr Archie Norman, who replaces Mr Redwood as shadow Environment Secretary, was one of Britain's most successful businessmen.
A Tory spokesman said last night that Mr Redwood and Mr Maples had left by "mutual consent", but there was no doubt at Westminster that they had been fired.
Mr Hague said after his surprise reshuffle: "I have appointed some extremely talented shadow ministers.
"I have brought two people in of great and proven ability, Michael Portillo as the shadow Chancellor and Archie Norman as the shadow Environment Secretary.
"I think it will add tremendously to the ability, talent and enthusiasm of the shadow cabinet."
The Labour Party was swift to react after last night's announcement. The Education Secretary, Mr David Blunkett, said: "A Tory leader with no judgment has appointed a shadow Chancellor with no judgment. Michael Portillo and his right-wing agenda are not part of the solution for the Tories; they are the problem.
"If William Hague thinks Portillo is the answer to his problems it's just further evidence of what poor judgment he has."