Shake-up restores Lib Dem EU rebels

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The shake-up sees jobs go to three MPs who quit the frontbenches earlier this year in order to be able to vote in favour of a referendum on the EU's Lisbon Treaty, after Mr Clegg ordered them to abstain.

Alistair Carmichael (Orkney and Shetland) returns to the Northern Ireland and Scotland brief which he resigned in March. Former countryside spokesman Tim Farron (Westmorland and Lonsdale) takes on the environment, food and rural affairs portfolio.

And David Heath (Somerton & Frome) is appointed to lead a Commission on Privacy with a remit to examine the current state of privacy in the UK and how new technology can be used to protect rather than undermine the confidentiality of personal data.

Some 15 of the party's 63 MPs voted for a referendum in March, in the biggest challenge to Mr Clegg's leadership since he took on the top job last December.

The appointment of the three Lisbon rebels is an indication that the Lib Dem leader believes he has put the internal row over a referendum behind him.

In other changes to what the Lib Dems refer to as their shadow cabinet, former environment spokesman Steve Webb (Northavon) takes on responsibility to shadow the new energy and climate change department. And Sarah Teather (Brent East) moves from business, enterprise and regulatory reform to become housing spokeswoman for the party.

Her old business portfolio goes to John Thurso (Caithness, Sutherland and Easter Ross).

Mr Clegg said: "The team I am announcing is a reflection of the vast talent in the Liberal Democrat party which will be able to hold the new cabinet to account.

"I look forward to working with them to take forward my agenda and show that the Liberal Democrats are the only party with practical plans to help people in their everyday lives."