Brown to complete Cabinet reshuffle

Phil Woolas sparked controversy after saying that Muslim women wearing the veil could spark "fear and resentment" among non-Muslims and warning that the practice of first-cousin marriage in Britain's Pakistani community was leading to high numbers of birth defects.

But he has also been one of Labour's most vocal critics of the British National Party, and on Saturday night said his efforts to raise awareness of the dangers of cousins marrying had won support from doctors and members of the Asian community in his Oldham East and Saddleworth constituency.

The final details of a reshuffle which saw the surprise return of Peter Mandelson to the Cabinet were initially expected to be unveiled on Saturday.

But Downing Street held back on an announcement amid speculation that Mr Brown was struggling to find a role for prominent left-winger Jon Cruddas in a "unity government" representing all shades of Labour opinion.

Mr Cruddas, who fought a well-regarded campaign for the Labour deputy leadership last year, had apparently indicated he would be ready to accept a government post. But later reports suggested he had rejected offers of a job in order to remain on the backbenches.

Mr Mandelson - whose appointment ended a feud with Mr Brown dating back 14 years - insisted he is now "joined at the hip" with the Prime Minister.

Labour left-wingers had warned that the new Business Secretary, a close ally of Tony Blair, would be a divisive figure in the Government.

But Mr Mandelson told The Observer: "What's important is what things are like now and will be in the future. And certainly from here on in we're joined at the hip. That's the only way you can be when you're serving together in the same government."

He acknowledged that his relations with the PM had been "a bit combative, probably a bit prickly" at times, but insisted they had "never entirely lost friendship".