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Blair advised Mandelson on return Blair advised Mandelson on return
(40 minutes later)
Peter Mandelson consulted Tony Blair before accepting a job in Gordon Brown's cabinet, he has revealed.Peter Mandelson consulted Tony Blair before accepting a job in Gordon Brown's cabinet, he has revealed.
The new business secretary, whose return has caused controversy within Labour, said the former PM told him it was "a no-brainer" to take the job.The new business secretary, whose return has caused controversy within Labour, said the former PM told him it was "a no-brainer" to take the job.
Mr Mandelson told Sky News he was "surprised" about the offer but thought it was the "right thing to do".Mr Mandelson told Sky News he was "surprised" about the offer but thought it was the "right thing to do".
He sought to allay concerns from some within the party about the move, saying "we are all part of the same team now".He sought to allay concerns from some within the party about the move, saying "we are all part of the same team now".
And he praised Gordon Brown, saying he had "changed", and had a "very steady hand on the tiller".
'Family''Family'
He also stressed he would not be running Labour's campaign at the next general election. Speaking of his surprise appointment. Mr Mandelson said: "When times get tough, families pull together and that is what we are doing. It is all hands on deck."
Speaking of his surprise appointment he said: "When times get tough, families pull together and that is what we are doing. It is all hands on deck."
We are all part of the same team now Peter MandelsonWe are all part of the same team now Peter Mandelson
He sought to play down reports that at least one cabinet minister had tried to block his appointment and that others had threatened to resign unless he or another senior Blairite figure was brought back, urging unity in the party.He sought to play down reports that at least one cabinet minister had tried to block his appointment and that others had threatened to resign unless he or another senior Blairite figure was brought back, urging unity in the party.
"We are all part of the same team now," he said. "It is what the party wants and what the country needs.""We are all part of the same team now," he said. "It is what the party wants and what the country needs."
Asked about the mutterings about Gordon Brown's leadership in recent months, he said he did not believe there had been a "plot or conspiracy" against the prime minister.Asked about the mutterings about Gordon Brown's leadership in recent months, he said he did not believe there had been a "plot or conspiracy" against the prime minister.
However, he said people were "concerned" about the direction of the party and whether it had the capacity to renew itself.However, he said people were "concerned" about the direction of the party and whether it had the capacity to renew itself.
'Labour challenge'
Looking ahead, he said Labour had to show it had the strength to steer the country through the economic downturn and then come up with "new, imaginative ideas" to take the country forward.Looking ahead, he said Labour had to show it had the strength to steer the country through the economic downturn and then come up with "new, imaginative ideas" to take the country forward.
"If I can play my part and make a contribution, that is what I want to do," he said."If I can play my part and make a contribution, that is what I want to do," he said.
But he said claims that he would be running the next election campaign were false, adding that someone he trusted was set to take on the role.But he said claims that he would be running the next election campaign were false, adding that someone he trusted was set to take on the role.
Mr Mandelson has acknowledged that he and Mr Brown have had a difficult relationship in the past but stressed that they had never completely neglected their friendship. 'Desperate act'
Earlier, he told the Observer he would be "joined at the hip" to the prime minister from now on. Mr Mandelson has acknowledged that he and Mr Brown have had a difficult relationship in the past but he told the Observer that they had never completely neglected their friendship.
Mr Brown is due to confirm further ministerial changes later.
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 Shadow chancellor George OsborneI 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 Shadow chancellor George Osborne
Meanwhile shadow chancellor George Osborne, who admitted twice dining with Mr Mandelson recently, said his return would make the government more divided.Meanwhile shadow chancellor George Osborne, who admitted twice dining with Mr Mandelson recently, said his return would make the government more divided.
"We need unity," Mr Osborne told BBC One's The Andrew Marr show."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.""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.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.
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
"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.""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. Mr Mandelson told Sky News he had met Mr Osborne "completely by chance" in a Greek restaurant but had not criticised the prime minister.
"People tend to get into a lather on this subject really quite unnecessarily," he said. Chancellor Alistair Darling defended Mr Mandelson's appointment, saying it strengthened the government at a difficult time.
'Prickly' "People tend to get into a lather on this subject really quite unnecessarily," he told the BBC.
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. Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when his new role was announced on Friday.
"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." His return has not been welcomed by some backbenchers on Labour's left, with one describing him as the most "divisive" figure in the party's recent history.
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.
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. Reshuffle continues
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. Mr Brown is due to confirm further ministerial changes later.
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 the most recent changes announced, Shahid Malik was named a justice minister while Jon Trickett becomes Gordon Brown's parliamentary private secretary.
In other reshuffle developments: The BBC's political correspondent Jo Coburn said the latter move would "go some way to placating those on the left of the party".
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  • 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, as he will need to appoint someone to shadow the new Department for Energy and Climate Change, led by Ed Miliband.
The reshuffle could force Conservative leader David Cameron to follow suit with his shadow cabinet. Meanwhile, a poll carried out in marginal constituencies before the reshuffle suggests David Cameron is heading for victory.
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 survey by ICM for the News of the World estimates Labour could lose 164 seats, giving the Tories a 78-seat majority.