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I'll be close to PM - Mandelson I'll be close to PM - Mandelson
(about 2 hours 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 in the past had a difficult relationship, they had never completely neglected their friendship. He told the Observer that although the pair had had a difficult relationship in the past, 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. Meanwhile shadow chancellor George Osborne, who admitted twice dining with Mr Mandelson recently, said his return would make the government more divided.
The BBC's political correspondent Jo Coburn said the move would "go some way in placating those on the left of the party and counterbalance Peter Mandelson's appointment". "We need unity," Mr Osborne told BBC One's The Andrew Marr show.
"We need a united government and I can't see how bringing in Peter Mandelson to prop up Gordon Brown is going to do anything more than make it a more divided government. It is a completely desperate act."
The Sunday Times reported that Mr Mandelson had "dripped pure poison" about the prime minister to a senior Tory, but Mr Osborne refused to confirm whether he was the Conservative in question or what he had said.
"I don't think what he told me was any different from what he's been telling anyone who's been having dinner with him in recent months."
Chancellor Alistair Darling, speaking on the same programme, defended the appointment of Mr Mandelson and said it strengthened the government at a difficult time.
"People tend to get into a lather on this subject really quite unnecessarily," he said.
'Prickly''Prickly'
Describing his relationship with the prime minister, Mr Mandelson told the Observer: "Yes, we have history. Of course, there have been difficulties in our relationship.Describing his relationship with the prime minister, Mr Mandelson told the Observer: "Yes, we have history. Of course, there have been difficulties in our relationship.
"But we have never entirely lost our friendship. That may be surprising to you. But even in some of the darker moments, we were still able to talk very frankly to each other. And very honestly.""But we have never entirely lost our friendship. That may be surprising to you. But even in some of the darker moments, we were still able to talk very frankly to each other. And very honestly."
He admitted he had been unnecessarily "prickly" in the past, and added: "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.". 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 full: Cabinet reshuffle He admitted he had been unnecessarily "prickly" in the past, and added: "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." 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 full: Cabinet reshuffle
Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when the announcement was made on Friday, and the two men had learnt lessons from the past.Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when the announcement was made on Friday, and the two men had learnt lessons from the past.
His 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.His 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.
But Olympics minister Tessa Jowell told the BBC that, in his new role, Mr Mandelson would play "an absolutely pivotal role in guiding the country towards greater stability".
Mr Mandelson 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 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.
Meanwhile, a poll carried out in marginal constituencies before the reshuffle suggests David Cameron is heading for victory at the next general election.Meanwhile, a poll carried out in marginal constituencies before the reshuffle suggests David Cameron is heading for victory at the next general election.
The survey by ICM for the News of the World estimates Labour could lose 164 seats, handing power and a 78-seat majority to the Conservative party.The survey by ICM for the News of the World estimates Labour could lose 164 seats, handing power and a 78-seat majority to the Conservative party.
But there was some cheer for Labour because those polled - more than 1,000 people by telephone in 192 Labour seats - said Mr Brown was better equipped than Mr Cameron to deal with the economic crisis.But there was some cheer for Labour because those polled - more than 1,000 people by telephone in 192 Labour seats - said Mr Brown was better equipped than Mr Cameron to deal with the economic crisis.
In other reshuffle developments:
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  • There are reports that the prominent left-winger John Cruddas, MP for Dagenham, turned down a ministerial role
  • Phil Woolas has been named as the new immigration minister, taking over from Liam Byrne
  • The Mail on Sunday has reported that Chris Bryant will be given 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
  • 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 job there
  • A message published on Transport Minister Tom Harris's website said the prime minister sacked him in a phone call to his Glasgow home on Friday evening
 In other reshuffle developments:
  • Jon Trickett MP becomes Gordon Brown's parliamentary private secretary, in a move the BBC's political correspondent Jo Coburn said would "go some way to placating those on the left of the party
  • There are reports that the prominent left-winger John Cruddas, MP for Dagenham, turned down a ministerial role
  • Phil Woolas has been named as the new immigration minister, taking over from Liam Byrne
  • The Mail on Sunday has reported that Chris Bryant will be given 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
  • 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 job there
  • A message published on Transport Minister Tom Harris's website said the prime minister sacked him in a phone call to his Glasgow home on Friday evening
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.