Mandelson return 'adds strength'

Ed Miliband, who was appointed to the new post of Energy and Climate Change Secretary in the reshuffle, acknowledged that Mr Mandelson had many critics, but insisted that even they would agree that he was a person of "immense talent" who would be good for British business.

Mr Miliband declined to comment on some of the big issues which face him in his new post, such as whether to oppose a coal-fired power station at Kingsnorth or the third runway at Heathrow Airport.

But he set out the principles which would guide his decisions, telling BBC Radio 4's Today programme: "We need an energy policy which reflects the need to tackle climate change, but we also need a climate change policy which is fair to families."

The Prime Minister is expected to complete the reshuffle within the next few days by filling gaps in the junior ministerial ranks left by Friday's changes, including immigration minister and police minister in the Home Office, as well as a trade minister to work with Mr Mandelson at the Department for Business, Enterprise and Regulatory Reform.

Unconfirmed press reports claimed that at least one Cabinet minister argued against Mr Mandelson's return. And there were suggestions that leading left-winger Jon Cruddas had discussions with Mr Brown over a possible job, but told the PM he preferred to retain his liberty of action by remaining outside the Government.

Mr Miliband rejected suggestions that the return of figures from the Tony Blair era, including Mr Mandelson and new housing minister Margaret Beckett, indicated that Mr Brown had abandoned his promise to carry out "the work of change".

He said that the creation of his own department, as well as the establishment of a National Economic Council to co-ordinate cross-Government work in the current financial crisis, showed Mr Brown was changing his administration to meet the challenges of modern times.

"What it reflects is the fact that Gordon wants a structure of Government which reflects the needs of the time," said Mr Miliband. "But he also wants to use talent wherever he finds it.

"Peter Mandelson has people who like him and people who don't like him, but even his critics would accept that this is someone of immense talent and someone of even greater experience now that he has been the EU Trade Commissioner for three years. I think British business will be thinking 'Actually, Peter Mandelson is a good person to be in charge of our interests in Government'."