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I'll be close to PM - Mandelson I'll be close to PM - Mandelson
(about 1 hour later)
New business secretary Peter Mandelson has said he will be "joined at the hip" to the prime minister from now on.New business secretary Peter Mandelson has said he will be "joined at the hip" to the prime minister from now on.
He told the Observer that although the pair had once had a "prickly" relationship, they had never completely neglected their friendship.He told the Observer that although the pair had once had a "prickly" relationship, they had never completely neglected their friendship.
Mr Brown is due to confirm further ministerial changes later.Mr Brown is due to confirm further ministerial changes later.
He is believed to have tried to pacify Labour's left wing by offering MP Jon Trickett the post of his parliamentary private secretary.He is believed to have tried to pacify Labour's left wing by offering MP Jon Trickett the post of his parliamentary private secretary.
The BBC's political correspondent Jo Coburn said: "That will go some way in placating those on the left of the party and counterbalance Peter Mandelson's appointment."The BBC's political correspondent Jo Coburn said: "That will go some way in placating those on the left of the party and counterbalance Peter Mandelson's appointment."
'Difficulties''Difficulties'
Mr Mandelson's return has not been welcomed by some backbenchers on Labour's left.Mr Mandelson's return 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 stop the appointment at the last minute.And at least one member of the cabinet is believed to have tried to stop the appointment at the last minute.
Describing his relationship with the prime minister, Mr Mandelson told the Observer it had sometimes been "difficult" but said: "We never lost our friendship."Describing his relationship with the prime minister, Mr Mandelson told the Observer it had sometimes been "difficult" but said: "We never lost our friendship."
He said he backed Mr Brown's leadership and the prime minister had proved he was capable of making "tough decisions" by recalling Mr Mandelson to cabinet.He said he backed Mr Brown's leadership and the prime minister had proved he was capable of making "tough decisions" by recalling Mr Mandelson to cabinet.
He said: "What's important is what things are like now, and will be in the future. And from here on in, we're joined at the hip."He said: "What's important is what things are like now, and will be in the future. And from here on in, we're joined at the hip."
Our correspondent said there were reports that the prominent left-winger John Cruddas, MP for Dagenham, turned down a ministerial role.Our correspondent said there were reports that the prominent left-winger John Cruddas, MP for Dagenham, turned down a ministerial role.
Other high profile appointments include that of Phil Woolas, who been named as the new immigration minister, taking over from Liam Byrne. Other high profile appointments include that of Phil Woolas, who has been named as the new immigration minister, taking over from Liam Byrne.
Mr Woolas moves from the environment department where he was responsible for climate change and energy policies.Mr Woolas moves from the environment department where he was responsible for climate change and energy policies.
Controversial choiceControversial choice
Mr Woolas told the Times he felt immigration was the second biggest problem facing the population and he would "toughen" up current legislation on the issue.Mr Woolas told the Times he felt immigration was the second biggest problem facing the population and he would "toughen" up current legislation on the issue.
The MP for Oldham East and Saddleworth was at the centre of controversy earlier this year when he raised concerns that the practice of first-cousin marriage in Britain's Pakistani community was leading to high levels of birth defects.The MP for Oldham East and Saddleworth was at the centre of controversy earlier this year when he raised concerns that the practice of first-cousin marriage in Britain's Pakistani community was leading to high levels of birth defects.
The Mail on Sunday has reported that Chris Bryant, who is said to have helped the campaign which pushed Tony Blair to announce his retirement date, will be rewarded with the post of deputy to Leader of the Commons Harriet Harman.The Mail on Sunday has reported that Chris Bryant, who is said to have helped the campaign which pushed Tony Blair to announce his retirement date, will be rewarded with the post of deputy to Leader of the Commons Harriet Harman.
The paper also claimed that Barbara Follett would become culture minister, replacing Margaret Hodge, who was reported to be seeking compassionate leave to look after her ill husband.The paper also claimed that Barbara Follett would become culture minister, replacing Margaret Hodge, who was reported to be seeking compassionate leave to look after her ill husband.
And in another set of changes, Shahid Malik has become a justice minister, while Vernon Coaker is expected to be promoted to police minister.And in another set of changes, Shahid Malik has become a justice minister, while Vernon Coaker is expected to be promoted to police minister.
Sadiq Khan has a new job in the communities and local government department - but Parmjit Dhanda is believed to have lost his role there.Sadiq Khan has a new job in the communities and local government department - but Parmjit Dhanda is believed to have lost his role there.
Mr Khan told BBC News Mr Brown rang him to break the news.Mr Khan told BBC News Mr Brown rang him to break the news.
He said: "I'm very pleased. It is a pleasure for me to join the communities and local government team."He said: "I'm very pleased. It is a pleasure for me to join the communities and local government team."
"He rang me up last night...he likes to do these things himself because he's our leader.""He rang me up last night...he likes to do these things himself because he's our leader."
But a message published on Transport Minister Tom Harris's website, said the prime minister sacked him in a phonecall to his Glasgow home on Friday evening.But a message published on Transport Minister Tom Harris's website, said the prime minister sacked him in a phonecall to his Glasgow home on Friday evening.
'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.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.
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 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."But 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 prime minister defended his decision to bring Mr Mandelson back into the cabinet at a news conference on Friday.The prime minister defended his decision to bring Mr Mandelson back into the cabinet at a news conference on Friday.
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.
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."
ConsequencesConsequences
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.
Chris Grayling, for the Conservatives, said the reshuffle reinforced Mr Brown's weaknesses.Chris Grayling, for the Conservatives, said the reshuffle reinforced Mr Brown's weaknesses.
He said: "This is a back-to-the-future reshuffle and certainly not the change Britain needs."He said: "This is a back-to-the-future reshuffle and certainly not the change Britain needs."
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."
Former home secretary David Blunkett, who has been mooted by the Mail on Sunday, as another possible returnee, described the appointment as a "masterstroke" and told the BBC it would unite the government.Former home secretary David Blunkett, who has been mooted by the Mail on Sunday, as another possible returnee, 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.