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Mandelson to return to government Mandelson to return to government
(20 minutes later)
EU Trade Commissioner Peter Mandelson is to return to the government, as Gordon Brown reshuffles his cabinet.EU Trade Commissioner Peter Mandelson is to return to the government, as Gordon Brown reshuffles his cabinet.
Mr Mandelson, who held two cabinet posts under Tony Blair, was reported to have fallen out with Mr Brown in 1994.Mr Mandelson, who held two cabinet posts under Tony Blair, was reported to have fallen out with Mr Brown in 1994.
But he is to return to the cabinet as a peer, he is no longer an MP, possibly to the trade and industry portfolio. He is no longer an MP but will be given a seat in the Lords, possibly with trade and industry portfolio.
The reshuffle is taking place after the announcement that Transport Secretary Ruth Kelly is to stand down to spend more time with her family. Business Secretary John Hutton will replace Des Browne as Defence Secretary, BBC political editor Nick Robinson says.
The reshuffle is taking place after the announcement that Transport Secretary Ruth Kelly is to stand down to spend more time with her family. Trade minister Lord Jones has also said he wants to step down.
But sources have told the BBC it is not merely a "tidying up exercise" but an attempt to reconfigure government to tackle the economic crisis.
There have been tensions between Mr Brown and Mr Mandelson for years, since the two men fell out when Mr Mandelson backed Tony Blair for the Labour leadership in 1994.
The BBC understands that Chief Whip Geoff Hoon will remain in the cabinet, despite being tipped to replace Mr Mandelson as European commissioner.