Former NHS chief executive Professor Sir Duncan Nichol is stepping down as director of a high-profile health services management unit - to be replaced by a more 'neutral' academic.

He has been given a new role at the Manchester University-based unit and will take a pay cut.

The move comes amid speculation about a lack of emphasis on research under his leadership and rumours that it could have 'political' dimensions.

Challenged on the claims, Professor Sir Duncan and the university said it was normal practice for heads of department posts to be rotated every three to four years. Professor Sir Duncan has been director since February 1995.

Professor Sir Duncan is still widely remembered in NHS circles for a Daily Mail interview in 1991, given while he was still a civil servant, in which he attacked opposition Labour claims that the NHS was being privatised.

Commenting on his new role, one source told the Journal this week: 'I would not be surprised if he had been squeezed out and I am sure the political dimension was a factor. Labour has never forgiven him for the Daily Mail piece. He would have no influence with New Labour. His successor is seen as neutral.'

Another source added: 'Research is not Duncan's forte, but funding streams depend on it these days.'

A third source said: 'Concern about research was probably a factor.' He added: 'The problem with the unit was that it had employed a number of ex-health service managers who were very good at some things but not others.'

Professor Sir Duncan's successor, Joan Higgins, who will take over as director on 1 August, is an academic, and chair of Manchester health authority. She set up the institute of health policy studies at Southampton University and was professor of social policy there. She moved to the Manchester unit six years ago as Professor Sir Duncan's deputy.

She told the Journal: 'We have had a focus on other things in Manchester over the past few years. We have concentrated on consultancy work and had not done as much R&D work as we would like.' But she said consultancy had been given a high profile even before Professor Sir Duncan took over.

Professor Sir Duncan said: 'I have been encouraging the research and development side while building up international work.'

Along with Angela Schofield he will also head an R&D project looking at the promotion of integrated care in the NHS.

Professor Sir Duncan has never been far from controversy. There was an outcry when he became a BUPA board member. He is also a member of a division of Westminster Healthcare concerned with diagnostic and rehabilitation.

Last year, the Manchester unit formed a partnership with Dearden Management, leading to speculation that the commercial link-up would damage the unit's reputation in teaching and research. Professor Sir Duncan dismissed the claims.

It was also earlier rumoured that the unit faced a pounds300,000 deficit. Professor Higgins said the unit was on course to balance its books by the end of the university financial year in July.