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Mandelson is back to rescue Brown
Joe Murphy, Political Editor3 Oct 2008
Peter Mandelson staged an astonishing comeback to the Cabinet for a third stint today.
In a jaw-dropping reshuffle, Gordon Brown made his oldest enemy Business Secretary and gave him a peerage.
"Third time lucky," beamed a delighted Mr Mandelson, who resigned twice over a secret home loan and an alleged passport scandal.
It was not the only surprising resurrection. Nick Brown, the diehard Brownite once sacked by Tony Blair, returned to his old job as Chief Whip.
Also, battle-hardened Margaret Beckett, who Mr Brown dropped as Foreign Secretary 15 months ago, was restored from the backbenches in the lesser post of Housing Minister.
There were fears that such a heady cocktail of big personalities could prove unstable in the long run.
Speaking in Downing Street, Mr Mandelson said: "The Prime Minister has asked me to come back. Our economy like every other is facing a very hard challenge as a result of the global financial crisis and in a sense it's all hands on deck.
"So I will be working along with the rest of the Government as hard as I can to help protect our economy and pull us through it."
On his relationship with Mr Brown, he added: "I get on with him fine. I think he's doing an exceptionally good job in what are very, very challenging conditions for our country.
"Of course we have had our ups and downs but we have also known each other for over 20 years and originally we worked very well together."
On his return to Government in his third Cabinet post, he said: "It's not what I was seeking and it is certainly not what I was expecting."
Today's changes were being billed as an "economic recovery reshuffle" and, unusually, Mr Brown was to announce them alongside Alistair Darling, who remains Chancellor.
Des Browne left Cabinet, despite being offered a sideways move. The new Defence Secretary is John Hutton, formerly at Business.
Geoff Hoon moves from the Whips' office to Transport, getting the spending department he wanted. Caroline Flint is promoted to Europe Minister.
As revealed in yesterday's Standard, Liam Byrne goes to the Cabinet Office as co-ordinator but he will attend Cabinet as a non-voting member.
Paul Myners, the former M&S chief and chairman of the Guardian Media Group, who donated to Mr Brown's leadership campaign, is a surprise announcement for City Minister with a peerage. A new department combining Environment and Climate Change will be headed by Ed Miliband, brother of Foreign Secretary David. He will promote nuclear power strongly.
Hilary Benn was stripped of green issues and will run Food and Rural Affairs.
Tessa Jowell keeps her beloved Olympics but relinquishes the Minister for London title. That will now become a "Boris Bashing" role, with tough Home Office Minister Tony McNulty tipped for the post.
A ministerial job for popular London MP Jon Cruddas was mooted.
Former Defence Minister Lord Drayson is another retread, returning as a business minister after taking a year off to be a racing driver.
There were no changes to the Cabinet big hitters. David Miliband keeps the Foreign Office, Jack Straw remains Justice Secretary and Jacqui Smith retains the fight on law and order.
Blairites Hazel Blears, James Purnell and Andy Burnham all keep their posts.
The Prime Minister also shook up his senior staff. Damian McBride, his highly rated political spokesman, moves to a strategic role - a change said to have been demanded by Mr Mandelson.
Mr McBride was frequently wrongly accused of undermining ministers but the Prime Minister will miss his media skills.
Mr Brown's combative aide Ian Austin was also rumoured to be moving.
The boldness of Mr Brown's reshuffle surprised MPs who had been led to expect limited changes.
Some feared a cull of Blairites, rather than the return of their godfather figure, Mr Mandelson. Baroness Ashton replaces him as European Commissioner. Europe Minister Jim Murphy becomes Scottish Secretary, to take on the SNP.
Mr Mandelson's recall was partly to boost the Government's economic recovery drive - as Europe's former former Trade Commissioner he is uniquely qualified to promote exports and investment - but it also clearly signalled that Mr Brown will not abandon New Labour.
He pioneered the modern soundbite, rapid rebuttal and "on message". But Ex-minister Peter Kilfoyle said: "I believe that the recall of twice disgraced Peter Mandelson is a thoroughly retrograde step."
Mr Mandelson added: "The whole of the world is together in facing these exceptional challenges. We have seen nothing like them in our life time and we all have to come together as the Government is doing and as this country will do to see us through it.
Former Cabinet minister David Blunkett, who also had to quit the Government twice, described Mr Mandelson's appointment as a "masterstroke".
"It is a masterstroke in the sense that Peter was an excellent secretary of state for trade and industry but more importantly the connections he has built up as trade commissioner in Europe will be invaluable to the UK," he said. "Of course it is a political stroke as well because it is inclusive and brings back someone who could be described as nothing else but an arch-Blairite."
Shadow foreign secretary William Hague said the reshuffle was a "stunning failure of judgment" by Mr Brown.
Reader views (37)
Looks like a case of keeping your friends close, enemies closer. The HMS NuLabour is seriously sinking.
- Triffidqueen, Desk in London, 06/10/2008 09:36
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Cut Mandy a bit of slack ya? Chap's had a bit of a rough time. Least he's back in time to save the day for GB. Provincial narrow mindedness...
- Rufus, Kingston-upon-Thames, 03/10/2008 15:49
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Another rabbit out of the hat from the PM. As Mr Blunkett says, "a masterstroke" (it takes one failed minister to spot another). I hope and trust that as part of his new portfolio Mr, or should it be Lord, Mandelson is made responsible for mortgages and enforcing ethical practices in the finance sector, he is, after all, an expert in this field.
- Mack, York, 03/10/2008 15:43
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Hello London,
The World has gone "NUTS" and the biggest one of all is the P.M..
Take about the lunatics running the asylum, the good ship Labour has just hit the "Ice berg". I wonder is it April the First?.
To the life-boats, Women and children first, and you Mandy, you should of stopped in Europe because this Government is doomed just like the Titanic was.
- J.L., Scarborough . N.Yorkshire., 03/10/2008 15:39
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My only hope is that once this ship sinks, it sinks once and for all, with all the lazy, good-for-nothing, hopeless wanabees clinging to their life-jackets. WHAT a waste of time and effort!
- Marianne, S W France, 03/10/2008 15:27
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More comebacks than Kevin Keegan. Maybe we'll get Joe Kinnear when he's forced to resign again.
- Mick, London, England, 03/10/2008 15:19
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Ugh! Peter Mandelson with his dubious history of activities to be invited back into the Cabinet yet again, and to boot to be appointed as a Lord. It was a disgrace that this unelected crony was given the highly paid post with almost unlimited expenses in Europe by Tony Blair after having to leave the Cabinet twice. Now this!
- Tom, Putney, London, 03/10/2008 15:12
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So we can expect him to be forced to resign over another dodgy mortgage application or will it be in relation to assisting some wealthy immigrant gaining residency rights here?
Power Corrupts and Absolute Power, corrupts absolutely. This bunch make John Major's Govt look as honest as a trappist monk.
- Adam, Harrow, UK, 03/10/2008 15:08
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What a bankrupt Brown is to call on such a discredited figure as Mandy. It is disgusting that Mandy will be elevated to the House of Lords, it reinforces further the call for urgent reform of the upper house. We are in such danger over the next 18 months from the further damage that Brown can inflict on this, my country.
- Brendan, sandhurst - england, 03/10/2008 14:25
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oh dear.
- Mike, County Durham, 03/10/2008 14:17
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If there is one person who is more unpopular than Brown is the sinister Mandelson. Brown must be desperate to have someone who is disliked more than him to take the flak.
- Beatriz, London, 03/10/2008 14:16
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As Tony Blair wanted to go down in history as another Winston Churchill, his successor must be looking to emulate Churchills predecessor. He already knows that he is the most unpopular PM since Neville Chamberlain, and obviously that is just not unpopular enough for him...He must be thinking along the lines of "What can I do to make everyone hate me even more than that lily livered appeaser of Hitler? och, I know, I'll just employ the slimiest, greasiest little weasel I can find...the noo"
Nice one Gordy, just when I thought you couldn't get even more blundering...well, you certainly will be remembered...
- Jk, London, 03/10/2008 14:14
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Mandleson minster of shooting in the foot
To be joined in the future by Ian Blair as what? Minster in charge of shooting in the head...
- Trevortucker, Norfolk, 03/10/2008 13:59
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Does Gordon Brown have a death wish? This would be like David Cameron welcoming Jeffrey Archer back into the fold!
- Stephen, Sussex, crawley, england, 03/10/2008 13:54
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i will vote for your party only if the this man is not allowed to return let him go and spin in europe
- Dennis Legon, leigh on sea, 03/10/2008 13:31
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The gall of this man - a crook, liar and cheat - to show his face in public is breathtaking. Labour has no respect for us, and continues to rub our faces in it. Shows just how out of toucht they are.
- Zaphod, zanzibar, 03/10/2008 13:31
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Good to see a rat joining a sinking ship
- C Adams, pont l abbé france., 03/10/2008 13:12
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If Gordon Brown wants to rid the House of Lords of the herditary peers, this is probably the most effective way of achieving his aim.
Faced with having this man who was forced twice to resign in disgrace from the cabinet being foisted upon them, I would not be surprised if the hereditary peers walked out of the House of Lords in disgust.
- Martin Fielding, London, England, 03/10/2008 11:56
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His stint in Europe will help him fiddle the books and hide skeletons.
- Neil, london uk, Airstrip ONE ., 03/10/2008 11:53
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Bring back Mandy, Campbell and Blair. You can dig up Robin Cook if you think it will help. It makes no difference: they are all losers and will either be in the Lords, writing for The Sun or fleecing misguided corporates for overpriced speeches by May 2010.
- Nobby Clark, Perth, Scotland, 03/10/2008 11:34
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Is it Browns plan to rally leave this country more broke and hated then we already are, or is it his way of having
Meddelson leading us into the third world status, and then have to go begging to the EU to get us out the mire.
- Hawkeye, multan Pakistan, 03/10/2008 11:32
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Isn't it amazing on how stupidly corrupt this governement is? They appear to be so short of personel that they have to pick a park pick up as a minister.
Is this the end for Britain?
- A. Winsley, London, 03/10/2008 11:28
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How desperate is Gordon Brown! He has the judgement of Satan. He has appointed as his chief of staff the man who set the example for the sub-prime mortgage application.
- John, London, 03/10/2008 11:26
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Is it no wonder everyone is clambering to emigrate.
How much bigger can the trough get ??
- Asw, Hong Kong, 03/10/2008 11:26
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This must be a joke - he is detested by all and sundry. Brown must be on the edge.
- Frederick, London, UK, 03/10/2008 11:20
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So, I take it that we can expect to see some more secret loans in return for fast-track passport approvals?
- John, London, 03/10/2008 11:19
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I believe this is a desperate measure to try and win the next election; Peter is a very sly man and nothing is too low for him in politics. Risky move Mr Brown, can be foolish as well.
- Richard, Bristol, 03/10/2008 11:16
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Mandelson, doubly disgraced, now elevated to the Lords, and returning to these shores.
Can Brown insult our intelligence and sensibilities any further?
Still, Mandelson knows a thing or two about mortgages.
- Chuck Unsworth, London, 03/10/2008 10:59
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I welcome Mr. Mandelson back to the reigns of State. This cabinet is not pink enough!
- Mags, London (Where else is there to live?), 03/10/2008 10:58
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If that's Brown's best shot Heaven Help Us All.
- David, East Grinstead, 03/10/2008 10:53
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Has Mandy got something on Gordon as well as Tony?
- Mike, London, 03/10/2008 10:48
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We really are sunk now...
- Nick, London, 03/10/2008 10:35
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Surely if he resigned from the Cabinet twice and was re-appointed once, its his second comeback?
- Graham Kirby, London, 03/10/2008 10:25
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This man's return would be the equivalent to sending torpedoes towards Brown's sinking Titanic. Mandelson is even less liked than Brown. If it happens, this would be a sign that Gordon Brown has totally lost it in terms of political judgment.
- Phil Jones, London UK, 03/10/2008 10:15
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Aliarster Campbell, now back desperately directing operations after silently slithering into No10 himself, has obviously counciled Bottler Brown to 'keep your friends close, and your enemies even closer'.
Which begs the question, what grotesque duplicities will they be hatching?
- Dave, cumbria, 03/10/2008 10:15
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Oh dear.
- Neil, london uk, Airstrip ONE ., 03/10/2008 10:01
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And this move is to win back disillusioned Labour voters is it?
- Matthew, London, UK, 03/10/2008 09:57
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