Clarke’s back and promptly takes aim at Mandelson

The former chancellor marked his return to frontline politics by accusing Lord Mandelson — his opposite number in the Government — of failing to stop Labour's "wandering aimlessness" on the economy.

Mr Clarke, a noted Europhile, also vowed not to rock the Tory boat over Europe and warned that Britain faces the "gravest economic crisis" of his lifetime.

Mr Cameron said: "Ken was the last Chancellor of the Exchequer to lead this country out of recession. He will be part of what will be the best economic team in Britain."

Mr Cameron also sought to strengthen his top team by effecting a job swap between populist Eric Pickles and Caroline Spelman.

Mr Pickles got Mrs Spelman's job as party chairman while Mrs Spelman, who is being investigated by the Commons watchdog over allegations that she used taxpayer's money to pay her nanny, replaces Mr Pickles as shadow communities secretary.

Tory "attack dog" Chris Grayling is appointed shadow home secretary amid Labour fears that crime could rise in a recession. He takes over from Dominic Grieve, who succeeded David Davis. The Mr Grieve who is also a QC now becomes shadow justice secretary.

There was confusion over the fate of rising star and Putney MP Justine Greening, with initial reports suggesting she was moving from the Treasury to the transport team but this was later denied and she was expected to become Mrs Spelman's deputy.

However, Mr Cameron risked accusations that he is not serious about boosting the influence of women at Westminster by cutting the number of female shadow cabinet members from seven to six.

The reshuffle spotlight, though, remained firmly on "big beast" Mr Clarke, 68, and especially on whether he will boost the Tory lead in the polls.
Labour immediately claimed the appointment of pro-European Mr Clarke would highlight "irreconcilable positions" within the Tory party.

Gordon Brown said: "It's good to have someone in the shadow cabinet who has supported our policy on Europe, supported our policy on VAT and is probably quietly supportive of many of our other policies."

On a trade mission to India, Lord Mandelson added: "I am an old political friend of Ken Clarke and I welcome him to his new post."

Shadow chancellor Mr Osborne denied that he would be overshadowed by Mr Clarke. "It's a fantastic addition to the frontbench," he said.

However, Liberal Democrat Treasury spokesman Vince Cable suggested Mr Osborne should have been replaced by Mr Clarke. "He should obviously be shadow Chancellor — so there will be tensions," he said.

Mr Cameron has trumpeted shadow foreign secretary William Hague as his deputy and is promoting shadow Europe minister Mark Francois to the shadow Cabinet — moves which will be seen as seeking to appease Rightwingers angry at Mr Clarke's comeback.

Alan Duncan moves to be shadow Commons Leader.

Cameron's major reshuffle

NEW ENTRY

Mark Francois, shadow Europe minister
The Eurosceptic MP's appointment to the shadow cabinet will be seen as counter-balancing Ken Clarke's return.

MOVED

Chris Grayling, shadow home secretary
The former shadow work and pensions secretary has soared through the ranks with his attacks on Labour sleaze.

Eric Pickles, Tory party chairman
The former shadow communities secretary is a tough-talking, populist ex-council leader who connects with Tory activists.

Dominic Grieve, shadow justice secretary
The former shadow home secretary is a highly cerebral barrister who has struggled to make an impact since taking over from David Davis last summer.

Alan Duncan, shadow Commons leader
The former shadow business secretary has been accused of failing to do enough in key economic post and was skiing when the shadow cabinet was deployed around the country this month.

Theresa May, shadow work and pensions secretary (was shadow Commons leader)
Cabinet minister James Purnell may feel he has an easier opponent in Mrs May than her predecessor Mr Grayling.

Nick Herbert, shadow environment secretary
The former shadow justice secretary is a moderniser with green credentials who is trusted with this portfolio.

Caroline Spelman, shadow communities secretary (was Tory party chairman)
A popular MP, but has had a quiet profile while she is investigated by the parliamentary watchdog over claims she used taxpayers' money to pay her nanny.

OUT

Peter Ainsworth (was shadow environment secretary)
He pays price for failing to damage Labour in this important policy area.