The first female Bishop of London has been appointed as the 133<sup>rd occupant of the third top post in the Church of England, in a move which is likely to delight liberals and dismay conservatives.

Downing Street announced the appointment this morning of Sarah Mullally, formerly a nurse and chief nursing officer in England. She has been bishop of Crediton after working in leading NHS hospitals in the capital including St Thomas's and the Royal Marsden. She became chief nursing officer in 199 and was ordained as a priest three years later, and in 2005 she was made a dame in recognition of her services to nursing.

The diocese of London bucks the trend of decline in the CofE, with growing congregations though despite a diverse theological landscape it remains predominantly conservative with numerous Anglo-Catholic and evangelical parishes.

Two years ago, Mullally became the first woman bishop to lead an ordination service when she ordained four clergy, three of whom were women.

When she was appointed to Crediton she told the Daily Telegraph it was important not to obsess about empty pews. 'I think that the Church does need to take seriously the change in the Church's membership and that is important but part of that is also to recognise that there are really good examples where the church engages with individuals that isn't around the pews,' she said.

Justin Welby, the Archbishop of Canterbury, welcomed the appointment, saying: 'Wonderful news – Bishop Sarah brings to this remarkable ministry in this great city an extraordinary experience and profound gifts, which are guided by her faith in Jesus Christ, who is the foundation of all that she is.'