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Mandelson 'good for UK business' Mandelson 'good for UK business'
(40 minutes later)
Peter Mandelson has "immense talent" and will be good for British business, cabinet member Ed Miliband has said.Peter Mandelson has "immense talent" and will be good for British business, cabinet member Ed Miliband has said.
Mr Miliband, promoted to head of a new energy and climate change department, said even Mr Mandelson's many critics had to agree on his political clout.Mr Miliband, promoted to head of a new energy and climate change department, said even Mr Mandelson's many critics had to agree on his political clout.
Gordon Brown is expected to complete his ministerial reshuffle later, as Mr Mandelson's return grips the news.Gordon Brown is expected to complete his ministerial reshuffle later, as Mr Mandelson's return grips the news.
Some backbenchers have not welcomed his return, and at least one cabinet member is thought to have tried to prevent it.Some backbenchers have not welcomed his return, and at least one cabinet member is thought to have tried to prevent it.
'Experience''Experience'
Mr Mandelson, an EU trade commissioner since 2004, has been appointed as business secretary, replacing John Hutton.Mr Mandelson, an EU trade commissioner since 2004, has been appointed as business secretary, replacing John Hutton.
Mr Miliband, who had been minister for the cabinet office, told BBC News: "I think, you know, Peter Mandelson - some people like him, some people who don't like him - but even his critics would accept that this is someone of immense talent. Mr Miliband, former minister for the cabinet office, told BBC News: "Some people like him, some people who don't like him - but even his critics would accept that this is someone of immense talent.
"And, also, someone of even greater experience, now that he's been the EU Trade Commissioner for three years."And, also, someone of even greater experience, now that he's been the EU Trade Commissioner for three years.
"I think British business will be thinking, actually, Peter Mandelson's a good person to be in charge of our interests in government.""I think British business will be thinking, actually, Peter Mandelson's a good person to be in charge of our interests in government."
Mr Mandelson said he was surprised but "proud" when the announcement was made on Friday.Mr Mandelson said he was surprised but "proud" when the announcement was made on Friday.
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 reshuffleCABINET 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 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.He 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.
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, replacing 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: "Some backbenchers on the left have already denounced his appointment while I understand one cabinet minister tried to block it at the 11th hour".
"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 it was "an extraordinary step backwards" and that he was "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." Mr Miliband said the creation of the new Department for Energy and Climate Change was a recognition that the two issues must be considered in tandem.
Mr Miliband said the creation of the new Energy and Climate Change department was a recognition that energy and climate change must be considered in tandem.
He told BBC Radio 4: "This new department... reflects the fact that energy policy and climate change policy are inextricably linked, but they've been separate in government.He told BBC Radio 4: "This new department... reflects the fact that energy policy and climate change policy are inextricably linked, but they've been separate in government.
"With the majority of carbon emissions coming from our use of energy, it's right to bring them together."
The reshuffle could force Conservative leader David Cameron to follow suit with his shadow cabinet.
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 returnOf 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
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. "With the majority of carbon emissions coming from our use of energy, it's right to bring them together."
The prime minister defended his decision to bring Mr Mandelson back into the cabinet at a news conference on Friday. The reshuffle could force Conservative leader David Cameron to follow suit with his shadow cabinet to take account of the changes made to the government, including the creation of the new department.
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. The prime minister defended his decision at a news conference on Friday.
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. 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: "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.
'Masterstroke''Masterstroke'
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.
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.
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."
Gordon Brown explains why he brought Peter Mandelson backGordon Brown explains why he brought Peter Mandelson back
Leader of the House of Lords, Baroness Ashton, replaces Mr Mandelson in Brussels.
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.
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."