Peter Mandelson's new Whitehall empire could cost £3m

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It is the cost estimated by civil servants for rebranding, changing stationery, switching IT and office reorganisations to carve out his fiefdom.

Lord Mandelson was effectively made Deputy Prime Minister in last Friday's Cabinet reshuffle and given a vast department created by merging two ministries.

From being plain business secretary, he took on the lengthy title of "First Secretary of State, Secretary of State for Business, Innovation and Skills and Lord President of the Council".

But such grandeur comes at a price. The Business, Enterprise and Regulatory, and Innovation, Universities and Skills departments were created in 2007 at a cost of £7million, including £218,063 on rebranding at BERR including emails, a website and headed stationery - all of which will have to change again.