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Brown due to complete reshuffle Brown making government reshuffle
(about 10 hours later)
Gordon Brown is expected to complete his ministerial reshuffle later, as Peter Mandelson's return to the cabinet dominates the political debate. Gordon Brown is completing his government reshuffle, with the news that transport minister Tom Harris has lost his job.
More ministerial changes are due to be revealed, including filling the policing and immigration posts. More ministerial changes are due to be revealed later by Mr Brown - attending a Paris financial summit - including the policing and immigration posts.
In the summer Mr Harris, MP for Glasgow South, wrote that despite the credit squeeze people should not be miserable.
Peter Mandelson's return to the cabinet has dominated the reshuffle debate.
Mr Mandelson's appointment as business secretary has not been welcomed by some backbenchers on Labour's left.Mr Mandelson's appointment as business secretary has not been welcomed by some backbenchers on Labour's left.
And at least one member of the cabinet is believed to have tried to prevent his return at the last minute.And at least one member of the cabinet is believed to have tried to prevent his return at the last minute.
'Proud''Proud'
Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when the announcement was made on Friday.Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when the announcement was made on Friday.
Mr Mandelson twice resigned from cabinet posts under Tony Blair's leadership - once over a loan from ministerial colleague Geoffrey Robinson and once over allegations of misconduct regarding a passport application for the Hinduja brothers. CABINET MOVES Peter Mandelson - businessMargaret Beckett - housingGeoff Hoon - transportDes Browne resignsEd Miliband - climate/energyJohn Hutton - defenceJim Murphy - ScotlandLiam Byrne - cabinet officeCaroline Flint - Europe minister In quotes: Reshuffle reactionMandelson: Third time luckyIn full: Cabinet reshuffleMr Mandelson twice resigned from cabinet posts under Tony Blair's leadership - once over a loan from ministerial colleague Geoffrey Robinson and once over allegations of misconduct regarding a passport application for the Hinduja brothers. CABINET MOVES Peter Mandelson - businessMargaret Beckett - housingGeoff Hoon - transportDes Browne resignsEd Miliband - climate/energyJohn Hutton - defenceJim Murphy - ScotlandLiam Byrne - cabinet officeCaroline Flint - Europe minister In quotes: Reshuffle reactionMandelson: Third time luckyIn full: Cabinet reshuffle
He was later cleared of any wrongdoing.He was later cleared of any wrongdoing.
John Hutton, who has replaced Des Browne as defence secretary, said everyone in the Labour Party would welcome Mr Mandelson's return.John Hutton, who has replaced Des Browne as defence secretary, said everyone in the Labour Party would welcome Mr Mandelson's return.
But BBC political correspondent Iain Watson said that analysis appeared to be "a little over-optimistic".But BBC political correspondent Iain Watson said that analysis appeared to be "a little over-optimistic".
"Some backbenchers on the left have already denounced his appointment while I understand one cabinet minister tried to block it at the 11th hour," he said."Some backbenchers on the left have already denounced his appointment while I understand one cabinet minister tried to block it at the 11th hour," he said.
Left-wing Labour MP John McDonnell said: "This is an extraordinary step backwards into the worst elements of the Blair era, to reinstate possibly the most divisive figure in Labour's recent history."Left-wing Labour MP John McDonnell said: "This is an extraordinary step backwards into the worst elements of the Blair era, to reinstate possibly the most divisive figure in Labour's recent history."
The reshuffle could force Conservative leader David Cameron to follow suit with his shadow cabinet.The reshuffle could force Conservative leader David Cameron to follow suit with his shadow cabinet.
The Tory party will have to take account of the changes made to the government, including the creation of a new Department for Energy and Climate Change, led by Ed Miliband.The Tory party will have to take account of the changes made to the government, including the creation of a new Department for Energy and Climate Change, led by Ed Miliband.
The prime minister defended his decision to bring Mr Mandelson back into the cabinet at a news conference on Friday. Of course we've had our ups and downs but we have also known each other for over 20 years and originally we worked very well together Peter MandelsonBusiness Secretary Profile: Peter MandelsonBrowne quits cabinetBusiness hails Mandelson returnThe prime minister defended his decision to bring Mr Mandelson back into the cabinet at a news conference on Friday. Of course we've had our ups and downs but we have also known each other for over 20 years and originally we worked very well together Peter MandelsonBusiness Secretary Profile: Peter MandelsonBrowne quits cabinetBusiness hails Mandelson return
He said he needed "serious people for serious times" and it was in the "national interest" to bring in Mr Mandelson because of his experience in global trade.He said he needed "serious people for serious times" and it was in the "national interest" to bring in Mr Mandelson because of his experience in global trade.
Mr Brown said he wanted to "reinvent government" to cope with the new challenges of financial instability, oil price rises and food price rises.Mr Brown said he wanted to "reinvent government" to cope with the new challenges of financial instability, oil price rises and food price rises.
"He has built up a reputation over the last few years as someone who can get things done," said Mr Brown."He has built up a reputation over the last few years as someone who can get things done," said Mr Brown.
Pressed on his long feud with Mr Mandelson, said to stem from Mr Mandelson's backing for Mr Blair as Labour leader in the 1990s, he said: "Whatever the ups and downs have been in the past, everybody has got to come together and make sure that as a nation we come through this successfully."Pressed on his long feud with Mr Mandelson, said to stem from Mr Mandelson's backing for Mr Blair as Labour leader in the 1990s, he said: "Whatever the ups and downs have been in the past, everybody has got to come together and make sure that as a nation we come through this successfully."
Other key movers in the reshuffle include Geoff Hoon, who has taken over from Ruth Kelly as transport secretary, while Nick Brown returns to the cabinet as chief whip.Other key movers in the reshuffle include Geoff Hoon, who has taken over from Ruth Kelly as transport secretary, while Nick Brown returns to the cabinet as chief whip.
'Masterstroke''Masterstroke'
Immigration minister Liam Byrne is promoted to the new role of policy co-ordinator, which is not a full cabinet role, but he will attend cabinet meetings.Immigration minister Liam Byrne is promoted to the new role of policy co-ordinator, which is not a full cabinet role, but he will attend cabinet meetings.
Margaret Beckett replaces Caroline Flint as housing minister. Ms Flint moves to the Foreign Office as Europe minister.Margaret Beckett replaces Caroline Flint as housing minister. Ms Flint moves to the Foreign Office as Europe minister.
Leader of the House of Lords, Baroness Ashton, replaces Mr Mandelson in Brussels.Leader of the House of Lords, Baroness Ashton, replaces Mr Mandelson in Brussels.
Mr Mandelson, a former Northern Ireland and trade and industry secretary, said he was looking forward to the challenge of his new role.Mr Mandelson, a former Northern Ireland and trade and industry secretary, said he was looking forward to the challenge of his new role.
Referring to his past relationship with Mr Brown, he said: "Of course we've had our ups and downs, but we have also known each other for over 20 years and originally we worked very well together and I am very proud to have been invited to serve in his government."Referring to his past relationship with Mr Brown, he said: "Of course we've had our ups and downs, but we have also known each other for over 20 years and originally we worked very well together and I am very proud to have been invited to serve in his government."
Gordon Brown explains why he brought Peter Mandelson backGordon Brown explains why he brought Peter Mandelson back
Former home secretary David Blunkett described the appointment as a "masterstroke" and told the BBC it would unite the government.Former home secretary David Blunkett described the appointment as a "masterstroke" and told the BBC it would unite the government.
"It is embracing someone who, in the past, had been seen as being very close to Tony Blair, so it's an inclusive measure," he said."It is embracing someone who, in the past, had been seen as being very close to Tony Blair, so it's an inclusive measure," he said.
For the Conservatives, William Hague said it was a "stunning failure of judgement" by Mr Brown: "In bringing back Peter Mandelson - the man who created Labour spin - he has broken his promise to govern in an honest and open way."For the Conservatives, William Hague said it was a "stunning failure of judgement" by Mr Brown: "In bringing back Peter Mandelson - the man who created Labour spin - he has broken his promise to govern in an honest and open way."
Danny Alexander, for the Liberal Democrats, said: "Resurrecting ex-ministers from the political graveyard is not going to breathe new life into Gordon Brown's zombie government."Danny Alexander, for the Liberal Democrats, said: "Resurrecting ex-ministers from the political graveyard is not going to breathe new life into Gordon Brown's zombie government."