He succeeds Sir John Banham who resigned from the post at the beginning of the month, on the completion of the initial review of English shires. Sir David will take up post in early July.
In the meantime, Professor Malcolm Grant will be acting chairman. Professor Grant has been a member of the commission since 1992 and is currently professor of land economy at Cambridge University.
In a statement to the House of Commons today Mr Gummer said:
Sir David, 54, is currently in his third term of appointment as chairman of the Audit Commission; he was first appointed 1 September 1986. He is chairman of Advent Ltd, a leading international venture capital firm, and has been a director of the Bank of England since 1994.
A member of the Board of Companions, the Institute of Management, Sir David has served on advisory bodies to the Scottish Office, the department of trade and industry, the British Association for the Advancement of Science and the CBI Council. He was the first chairman of the British Venture Capital Association and is currently a member of the governing council of Southampton University.