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Mandelson 'good for UK business' PM pledges 'nation over politics'
(40 minutes later)
Peter Mandelson has "immense talent" and will be good for British business, cabinet member Ed Miliband has said. The national interest must come before party politics, the prime minister has said of his controversial appointment of Peter Mandelson to the cabinet.
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 Mandelson, considered divisive by many Labour MPs, was drafted back to the cabinet for an unprecedented third time in a major cabinet reshuffle.
Gordon Brown is expected to complete his ministerial reshuffle later, as Mr Mandelson's return grips the news. Gordon Brown said he wanted the best talent to tackle the economic crisis.
Some backbenchers have not welcomed his return, and at least one cabinet member is thought to have tried to prevent it. But some MPs have not welcomed Mr Mandelson's return - one cabinet member is thought to have tried to prevent it.
'Experience' Long-running feud
Mr Mandelson, an EU trade commissioner since 2004, has been appointed as business secretary, replacing John Hutton. Mr Mandelson, who for the last four years has been an EU trade commissioner, has been appointed as business secretary, replacing John Hutton.
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. The move triggered controversy among MPs not only because Mr Mandelson has twice been forced to resign, but because he and the prime minister are known to have been locked in a long-running feud.
"And, also, someone of even greater experience, now that he's been the EU Trade Commissioner for three years. But speaking outside Downing Street earlier, Mr Brown said: "I think the national interest comes before any party politics and any personality politics.
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
"Today we see a Labour government which is determined to work with business and to work with the rest of the community to deal with the real challenges that we face as a result of these global changes."
Mr Brown said he had put together a cabinet that could draw on expertise from across the business sector and the European Union.
The prime minister's decision was praised earlier by Ed Miliband, also a beneficiary of the reshuffle, having been appointed as head of the new Department for Energy and Climate Change.
He said Mr Mandelson was an "immense talent" who would be welcomed by the business community.
He 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.
"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."
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
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".
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".
But international development secretary Douglas Alexander denied the move would be divisive.
"I think he will make a significant contribution to the continuing challenge of sustaining our economy," said.
He added: "He is a Labour party man, he wasn't expecting this return."
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.
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, replacing Des Browne as defence secretary, said everyone in the Labour Party would welcome Mr Mandelson's return. Ed 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.
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".
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".
FROM THE TODAY PROGRAMME More from Today programmeFROM THE TODAY PROGRAMME More from Today programme
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. He told BBC Radio 4: "With the majority of carbon emissions coming from our use of energy, it's right to bring them together."
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 to take account of the changes made to the government, including the creation of the new department.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.
The prime minister defended his decision 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 returnSend us your comments
Mr Brown said he wanted to "reinvent government" to cope with the new challenges of financial instability, oil price rises and food price rises.
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."
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.
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.
Gordon Brown explains why he brought Peter Mandelson back
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.
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.
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."