Cabinet Return For Mandelson

Twice-ousted Labour politician Peter Mandelson has made a shock return to government, after a minor shake-up of the Brown Cabinet.

Mr Mandelson, who was previously posted to Brussels as EU Trade Commissioner, will take a Ministerial seat in the Upper Chamber.

The former MP, will be granted a peerage, allowing him to sit on the front bench in the House of Lords.

Mr Mandelson will take on the Business Secretary portfolio, following John Hutton's move to the Defence Department.

He told waiting reporters, outside Downing Street, it is "third time lucky", and gushed he was "very proud" to serve under Gordon Brown.

Commenting on the ongoing global economic crisis, Mr Mandelson said it was "all hands on deck", and added the Prime Minister is doing "an exceptionally good job" in "very challenging conditions".

Former Home Secretary David Blunkett described Mr Mandelson's return as a "masterstroke".

While Shadow Home Affairs Minister William Hague suggested the move would only make the government more "dysfunctional".

The Prime Minister's reshuffle was prompted by the resignation of Transport Minister Ruth Kelly last week.

Ms Kelly's portfolio will be taken over by current Chief Whip Geoff Hoon.

Mr Hoon's vacated post will be filled by Nick Brown, another former frontbencher.

Margaret Beckett has also made a return to frontline politics as Housing Minister.

Brown faithful Ed Milliband will head up a new energy and climate change department.

Baroness Ashton of Upholland will take up Mr Mandelson's mantel in Brussels.

No move has been made on the much-speculated formation of an holistic office for the Welsh, Scottish and Northern Ireland Secretaries of State.

Shaun Woodward will continue to preside over the Northern Ireland Office.

Most of the big players in the cabinet have stayed put, with David Milliband remaining in the Foreign Officer, Home Secretary Jacqui Smith holding her position and Alistair Darling resolute in the Exchequer.

Hillary Benn and Ed Balls both also retained Ministerial office.

The reshuffle, described as a "tidying up exercise", has already been embraced by Labour rebel Graham Stringer, who said it would bring more experience to the cabinet, and reflect "different strands" of thought within the party.

(PR/JM)