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Mandelson to return to government Mandelson to return to government
(30 minutes later)
EU Trade Commissioner Peter Mandelson is to return to the government, as Gordon Brown reshuffles his cabinet. Peter Mandelson has been drafted back into government in a surprise move, 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 had two cabinet jobs under Tony Blair, is expected be made Business Secretary with a seat in the House of Lords. He is no longer an MP.
He is expected be made Business Secretary with a seat in the House of Lords, as he is no longer an MP.
Business Secretary John Hutton will replace Des Browne at Defence and Geoff Hoon will replace Ruth Kelly as Transport Secretary.Business Secretary John Hutton will replace Des Browne at Defence and Geoff Hoon will replace Ruth Kelly as Transport Secretary.
A new department for energy and climate change is expected to be created.
Mr Browne is to leave the government, the BBC has learned. He was offered another job but he felt it would be an insult to the armed forces to leave as defence secretary but take another job.Mr Browne is to leave the government, the BBC has learned. He was offered another job but he felt it would be an insult to the armed forces to leave as defence secretary but take another job.
Mandelson rowMandelson row
Former foreign secretary Margaret Beckett is also tipped to return to the cabinet, possibly in a "cabinet enforcer" role while former cabinet minister Nick Brown is also expected to return as chief whip, to replace Mr Hoon.Former foreign secretary Margaret Beckett is also tipped to return to the cabinet, possibly in a "cabinet enforcer" role while former cabinet minister Nick Brown is also expected to return as chief whip, to replace Mr Hoon.
There is also expected to be some restructuring of departments. A department for energy and climate change, run by a cabinet-level minister, is expected to be created - taking the energy portfolio from the Department for Business and climate from Defra.
The reshuffle is taking place after the announcement that Ms Kelly is to stand down to spend more time with her family. Trade minister Lord Jones has also said he wants to step down.The reshuffle is taking place after the announcement that Ms Kelly is to stand down to spend more time with her family. Trade minister Lord Jones has also said he wants to step down.
Peter is a formidable politician, he's New Labour to his fingertips Derek DraperFormer Mandelson adviser Latest: Cabinet reshuffleProfile: Peter MandelsonPeter is a formidable politician, he's New Labour to his fingertips Derek DraperFormer Mandelson adviser Latest: Cabinet reshuffleProfile: Peter Mandelson
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.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.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.
But at the height of a row between Mr Mandelson and French President Nicholas Sarkozy over international trade talks this summer, the prime minister backed the trade commissioner, saying he was doing "excellent work".But at the height of a row between Mr Mandelson and French President Nicholas Sarkozy over international trade talks this summer, the prime minister backed the trade commissioner, saying he was doing "excellent work".
The BBC's James Landale said the appointment is part of the prime minister's attempts to reconfigure the government to deal with the economic crisis as Mr Mandelson has global experience in trade and finance. He has been EU trade commissioner for four years. The BBC's James Landale said the appointment is a "gamble" as Mr Mandelson is a "mercurial figure".
But he has been a controversial figure, resigning twice from cabinet posts - once over a loan from his ministerial colleague Geoffrey Robinson and once over allegations of misconduct over a passport application for the Hinduja brothers. An inquiry later cleared him of wrongdoing over the Hinduja affair. But it is part of the prime minister's attempts to reconfigure the government to deal with the economic crisis - and as as EU trade commissioner for the past four years, Mr Mandelson has global experience in trade and finance.
Derek Draper, a former advisor to Mr Mandelson, said the fact the former Hartlepool MP, "the most Blairite Labour figure" and Nick Brown - a close ally of the PM - were both being brought in showed "the Labour Party getting its act together". Business ambassador
He has been a controversial figure, resigning twice from cabinet posts - once over a loan from his ministerial colleague Geoffrey Robinson and once over allegations of misconduct over a passport application for the Hinduja brothers. An inquiry later cleared him of wrongdoing over the Hinduja affair.
But Derek Draper, a former advisor to Mr Mandelson, said the fact the former Hartlepool MP, "the most Blairite Labour figure," and Nick Brown - a close ally of the PM - were both being brought in showed "the Labour Party getting its act together".
Derek Draper: 'It's absolutely fantastic news for the Labour party'
"Peter is a formidable politician, he's New Labour to his fingertips. He's done a good job in that department before [trade and industry] .. and he knows a lot about trade, having been European trade commissioner.""Peter is a formidable politician, he's New Labour to his fingertips. He's done a good job in that department before [trade and industry] .. and he knows a lot about trade, having been European trade commissioner."
The BBC's Europe editor Mark Mardell says EU Commission president Jose Manuel Barroso has been talking to the prime minister about Mr Mandelson's replacement.
The BBC has learned that Sir John Bond, the chairman of Vodafone, may become a "business ambassador" for the government.The BBC has learned that Sir John Bond, the chairman of Vodafone, may become a "business ambassador" for the government.
Changes are not expected in the top cabinet jobs, chancellor, foreign secretary and home secretary but more are likely among lower level ministers.Changes are not expected in the top cabinet jobs, chancellor, foreign secretary and home secretary but more are likely among lower level ministers.
Most cabinet members have been briefed on the changes, which are expected to affect lower level ministers the most. Mr Brown has now left Downing Street on a visit to Luton.Most cabinet members have been briefed on the changes, which are expected to affect lower level ministers the most. Mr Brown has now left Downing Street on a visit to Luton.
Among those who have been tipped for promotion are immigration minister Liam Byrne, housing minister Caroline Flint, Home Office minister Tony McNulty and backbencher Jon Cruddas, who did well in last year's deputy leadership race.Among those who have been tipped for promotion are immigration minister Liam Byrne, housing minister Caroline Flint, Home Office minister Tony McNulty and backbencher Jon Cruddas, who did well in last year's deputy leadership race.
The creation of a new National Economic Committee is also expected to be confirmed, to bring together ministers across government to deal with the economic crisis.The creation of a new National Economic Committee is also expected to be confirmed, to bring together ministers across government to deal with the economic crisis.
HAVE YOUR SAYBrown has lost his marbles if he thinks that bringing Mandelson back will give him credibility Tim, WirralSend us your comments
The news that Ms Kelly was to step down as transport secretary to spend more time with her four children came as a surprise during Labour's conference week, just hours after Mr Brown had given his keynote speech.The news that Ms Kelly was to step down as transport secretary to spend more time with her four children came as a surprise during Labour's conference week, just hours after Mr Brown had given his keynote speech.
There had been suggestions she was unhappy with Mr Brown's leadership but she has described him as a "towering figure" and said it was a personal decision.There had been suggestions she was unhappy with Mr Brown's leadership but she has described him as a "towering figure" and said it was a personal decision.
Lord Jones - the former CBI chief brought into Gordon Brown's first cabinet as one of the so-called "goats" - a member of the "government of all talents" - has said he only ever intended to do the job for a limited time and was not a judgement on Mr Brown.Lord Jones - the former CBI chief brought into Gordon Brown's first cabinet as one of the so-called "goats" - a member of the "government of all talents" - has said he only ever intended to do the job for a limited time and was not a judgement on Mr Brown.
He had been involved in some controversy during his time in the job, for example expressing concerns about plans to tax "non-domiciled" foreigners in Britain.He had been involved in some controversy during his time in the job, for example expressing concerns about plans to tax "non-domiciled" foreigners in Britain.