Schools secretary Ed Balls has been reported as begging the prime minister on Thursday evening not to reappoint Peter Mandelson to the cabinet and is said to be furious at the decision to bring him back.Mr Balls has denied any such conversation between himself and the prime minister took place but other left wingers within the Labour party are believed to be gravely concerned at the return of Mr Mandelson, one of the orginal architects behind the New Labour project and a man often seen as an incredibly devisive figure within his own party. Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when the announcement was made on Friday. He twice resigned from cabinet posts under Tony Blair's leadership and was last in government in 2001. He originally had to resign once over an interest free loan from ministerial colleague Geoffrey Robinson to enable him to buy his house but returned to the cabinet a year later. He was then forced to resign in 2001 over allegations of misconduct regarding a passport application for the Hinduja brothers. He was later cleared of any wrong-doing. The prime minister will complete his ministerial reshuffle this weekend with a number of ministerial changes to be revealed among them the policing and immigration posts. Transport minister Tom Harris has lost his place in the government. In the summer Mr Harris, MP for Glasgow South, wrote that despite the credit squeeze people should not be miserable. The reshuffle is likely to force Conservative leader David Cameron to make changes within his shadow cabinet, probably at the start of next week, to reflect the changes in the government. Yesterday Mr Brown defended his decision to bring Mr Mandelson back into the cabinet. He said he needed "serious people for serious times" and it was in the "national interest" to bring in Mr Mandelson because of his experience in global trade. Mr Brown said he wanted to "reinvent government" to cope with the new challenges of financial instability, oil price rises and food price rises. "He has built up a reputation over the last few years as someone who can get things done," said Mr Brown. Referring to his past relationship with Mr Brown known to have been tumultuous for several years during the Blair era, Mr Mandelson said: "Of course we've had our ups and downs, but we have also known each other for over 20 years and originally we worked very well together and I am very proud to have been invited to serve in his government".
Saturday, October 4, 2008
Ed Balls 'begged' PM not to appoint Mandelson
Schools secretary Ed Balls has been reported as begging the prime minister on Thursday evening not to reappoint Peter Mandelson to the cabinet and is said to be furious at the decision to bring him back.Mr Balls has denied any such conversation between himself and the prime minister took place but other left wingers within the Labour party are believed to be gravely concerned at the return of Mr Mandelson, one of the orginal architects behind the New Labour project and a man often seen as an incredibly devisive figure within his own party. Mr Mandelson, an EU trade commissioner since 2004, said he was surprised but "proud" when the announcement was made on Friday. He twice resigned from cabinet posts under Tony Blair's leadership and was last in government in 2001. He originally had to resign once over an interest free loan from ministerial colleague Geoffrey Robinson to enable him to buy his house but returned to the cabinet a year later. He was then forced to resign in 2001 over allegations of misconduct regarding a passport application for the Hinduja brothers. He was later cleared of any wrong-doing. The prime minister will complete his ministerial reshuffle this weekend with a number of ministerial changes to be revealed among them the policing and immigration posts. Transport minister Tom Harris has lost his place in the government. In the summer Mr Harris, MP for Glasgow South, wrote that despite the credit squeeze people should not be miserable. The reshuffle is likely to force Conservative leader David Cameron to make changes within his shadow cabinet, probably at the start of next week, to reflect the changes in the government. Yesterday Mr Brown defended his decision to bring Mr Mandelson back into the cabinet. He said he needed "serious people for serious times" and it was in the "national interest" to bring in Mr Mandelson because of his experience in global trade. Mr Brown said he wanted to "reinvent government" to cope with the new challenges of financial instability, oil price rises and food price rises. "He has built up a reputation over the last few years as someone who can get things done," said Mr Brown. Referring to his past relationship with Mr Brown known to have been tumultuous for several years during the Blair era, Mr Mandelson said: "Of course we've had our ups and downs, but we have also known each other for over 20 years and originally we worked very well together and I am very proud to have been invited to serve in his government".
Mandelson: Third time lucky
Peter Mandelson has entered Downing Street to take up a Cabinet position again, saying "third time lucky".One of the architects of New Labour and currently trade commissioner for the EU, Mr Mandelson's return to government after two forced resignations has taken all observers by surprise. "It's not what I was seeking and it's not what I was expecting but nevertheless it's a great opportunity and a great challenge," he told journalists outside Number 10. Pushed on his relationship with Gordon Brown, he replied: "I get on with him fine, thank you very much. "Of course we've had our ups and downs, but we've also known each other for over 20 years and we work well together." In a press conference this afternoon, the prime minister said: "We are reinventing government." Explaining his selection of Mr Mandelson, Mr Brown said he needed "serious people for serious times". He continued: "We are bringing together the best team possible. "Britain can lead the world in coming out of the difficulties the world has. "Peter Mandelson has proved in his years as a commissioner he has unrivalled experience." Mr Mandelson will take over from John Hutton at the Department of Business, Enterprise and Regulatory Reform. A new department will be created dealing specifically with energy and climate change, headed by Ed Miliband. Mr Hutton will take over from Des Browne as defence secretary. Mr Browne will leave government, despite being offered other positions. Geoff Hoon, currently chief whip, will take over Ruth Kelly's position as transport secretary. He himself will be replaced by his deputy Nick Brown. The Mandelson move has taken all political observers by surprise. Mr Mandelson is a loyal Blairite who gets on famously badly with Mr Brown. Mr Mandelson will probably have to become a Lord, given that he is not an MP. He will be replaced at the EU by Baroness Ashton, currently leader of the House of Lords. John McDonnell, Labour MP for Hayes and Harlington said he was "utterly gobsmacked" by the move. "What was the prime minister thinking when he did this?" he asked on the BBC. "Peter Mandelson is possibly the most divisive figure in recent Labour history. I'm absolutely perplexed as to why he's done this." Opposition parties also sneered at the move, with Danny Alexander, chief of staff to Lib Dem leader Nick Clegg, saying: "Gordon Brown is deluded if he thinks that Peter Mandelson can help him convince the British people that his party still has what it takes to govern this country." David Blunkett, former home secretary, said it was a wise move. "It's imaginative because it demonstrates to the country he [Gordon Brown] can be decisive, and ensure we're caught unawares," he said. Apart form the headline changes, Mr Brown is also reshuffling many more junior ministerial positions. Liam Byrne, immigration minister, will become Cabinet office minister after impressing Mr Brown in his previous brief. Margaret Beckett will become housing minister after a one year stint on the backbenches. She takes over from Caroline Flint, who becomes foreign office minister for Europe. Jon Cruddas, the veteran Labour left-winger who increased his political capital with an energetic conference presence, did not receive the Cabinet position many had predicted for him. The 'big three' offices remain unchanged. Foreign secretary David Miliband, home secretary Jacqui Smith and chancellor Alistair Darling will all stay in their posts. Most senior positions, in fact, remain untouched. The new National Economic Committee will be designed to unite ministers and leading industry figures with an eye to spotting future market trends and plan for government action. It will meet for the first time on Monday morning. It is being compared to the emergency Cobra unit which convenes over events such as terrorist attacks or severe flooding, except the group will concentrate on spotting ailing banks and acting swiftly to save them. Sir John Bond, the chairman of Vodafone, has become a 'business ambassador' but several of the business figures hired by Mr Brown when he entered Number 10 are now on the way out, including trade minister, Lord Jones of Birmingham, and environment minister, Lord Rooker. Lord Jones - who refused to join the Labour Party when he became a minister - said: "I said when I took the job 15 months ago, I'd do it for the country, for the government, for my prime minister. "It's not a comment on him – I think his leadership is very, very good indeed."
Cabinet reshuffle: Final scorecard
Moved: Peter Mandleson, EU trade commissioner, becomes business secretary.John Hutton, business secretary, becomes defence secretary. Nick Brown, deputy chief whip, becomes chief whip. Geoff Hoon, chief whip, becomes transport secretary. Margaret Beckett, backbench MP, becomes housing minister. Ed Miliband, Cabinet office minister, becomes energy and climate secretary. Jim Murphy, Europe minister, becomes Scotland secretary. Lady Royal former chief whip, becomes leader of the House of Lords. Stephen Carter, aide to the prime minister, becomes minister for communications , technology and broadcasting in the Lords. Tony McNulty, home office minister, becomes minister for London. Liam Byrne, immigration minister, becomes Cabinet office minister. Lord Drayson, former science minister, becomes housing minister. Caroline Flint, housing minister, becomes foreign office minister for Europe. Staying put: Hilary Benn, environment secretary, remains in his position. Shawn Woodward, Northern Ireland secretary, remains in his position. Alistair Darling, chancellor, remains in his position. David Miliband, foreign secretary, remains in his position. Jacqui Smith, home secretary remains in her position. Jack Straw, justice secretary, remains in his position. Douglas Alexander, international development secretary, remains in his position. Harriet Harman, equality minister and leader of the House of Commons, remains in her position. James Purnell, work and pensions secretary, remains in his position. Hazel Blears, local communities secretary, remains in her position. Andy Burnham, cuture, media and sport secretary, remains in his position. Alan Johnson, health secretary, remains in his position. Ed Balls, schools secretary, remains in his position. Hilary Benn, environment secretary, remains in his position. Shaun Woodward, Northern Ireland secretary, remains in his position. Yvette Cooper, chief secretary to the Treasury, remains in her position. John Denham, universities secretary, remains in his position. Leaving government: Des Browne, defence secretary, leaves government. Ruth Kelly, transport secretary, leaves government. Lord Digby Jones, business minister, leaves government. Baroness Ashton, leader of the House of Lords, leaves government.
Ruth Kelly to stand down as MP
Transport secretary Ruth Kelly has said she will stand down as an MP after the next general election.Ms Kelly told a Labour supporters' meeting in her Bolton West constituency that it had been an "honour and a privilege" to serve the constituency since she was elected in 1997. "I've thoroughly enjoyed serving the people of my constituency and intend to continue to keep working diligently for them until the next general election," she said. "I've taken the area to my heart and will leave with a touch of sadness and fond memories, although I'm sure the decision I have taken is right for myself and my family." The 40-year-old had already announced her plans to leave the Cabinet to spend more time with her family. Reports of her resignation leaked out in the early hours of the morning after Gordon Brown's speech to the Labour conference in Manchester last month. The prime minister and Ms Kelly repeatedly stated that her decision to leave was due to personal reasons and her desire to spend more time with her four children. There has been considerable speculation over the timing of her resignation, however, given the fact it happened just as Mr Brown attempted to quash speculation about a leadership challenge. It was also previously suggested that Ms Kelly, a devout Catholic, may leave over objections to the Human Fertilisation and Embryology Bill. Ms Kelly was made the education secretary in 2004, before becoming communities secretary and then finally moving to department for transport in 2007.
Friday, October 3, 2008
Cameron speech: Reactions
William Hague, Alan Duncan, Oliver Letwin and others give politics.co.uk their reaction to David Cameron's leader's speech.William Hague, shadow foreign secretary: "It was a very good speech. I think it's the best he's delivered to a conference. It was really outstanding. What I liked about it was that it shows what he's really like. Those who really know, already know what he's really like, but I'm not sure the country at large has always understood that. But I think it really came across this week." Alan Duncan, shadow business secretary: "It was fantastic. It showed three things - character, values and judgement. And during the whole week they showed judgment. During all this financial turmoil, they got it right. They were sober but they looked forward. I think he knocked the experience charge absolutely stone dead. It was masterly, it was grown up - just what we needed." Oliver Letwin, Conservative policy director: "I think it was an enormously powerful speech. With a combination of power and charm he showed balance, maturity, clarity of judgement and character. He also nailed the point that Gordon Brown's experience is exactly the kind of experience we don't want to repeat." Susan Williams, Conservative party candidate for Bolton West: "I think he got the tone just right. I just thought the seriousness of the situation we found ourselves in during the last few weeks was really reflected in the initial part of his speech. I thought some of his messages were excellent. He knew his audience, both in the hall and the wider world." Pat Moore, local Conservative Association chairman: "This is my first conference, and I liked it very much. As the chairman of a Conservative association it gives me something to take back. I like what he said about the NHS. I liked what he said about the environment. I liked what he said about personal responsibility."
Analysis: Mandelson returns
The prince of darkness is back in Cabinet, but why? He was never liked by Labour, he was despised by the public – who saw in him the personification of Labour spin - and he was the sworn enemy of prime minister Gordon Brown. So what on earth is he doing back in power? Well, Peter Mandelson has two important saving graces. Firstly, he is a highly experienced trade commissioner, having done several years of sturdy work in the EU. Secondly, he and Mr Brown agree entirely on trade and financial matters – specifically anti-protectionism. These two factors make him suddenly important, a potential lifesaver as Labour tries to navigate itself through the current economic chaos. It's a dangerous move. On the plus side, Britain gets a strong, proven trade minister. On the downside, the potential for schism at the height of government increases and an unpopular Labour administration has thrown an unpopular face in front of the TV cameras again.The decision also indicates that tensions between the Blairite and Brownite tribes may be beginning to thaw, with a resurgent Tory party, a successful conference and global financial chaos unifying the party. Politically, the move fits into the reshuffle as a further advertisement for how seriously the government is taking the economic crisis. Whatever else people might think of him, Mr Mandelson is a heavy hitter on this sort of thing. Years organising EU trade, and standing up to the protectionist instincts of volatile leaders like France's Nicolas Sarkozy, will either kill you or make you stronger. It did not kill him. So Mr Brown has parachuted Mr Mandelson in as the centrepiece of his 'economic reshuffle': A serious figure to head a reorganised – possibly renamed – Department of Business, Enterprise and Regulatory Reform. A newly created National Economic Committee to spot ailing banks and swiftly act to shore them up, either through nationalisation or merger. The (frankly window-dressing) of high-level businessmen like Sir John Bond, Vodafone chairman, brought into government. It is all meant to communicate one message: We are on-top of all this madness. We are taking it seriously. We have the best team, the most experience, and the will take the most decisive action to ride the UK through the troubled times ahead. The Cabinet reshuffle, and specifically Mr Mandelson re-introduction to British political life, is a continuation of Labour's chief line of attack and should be considered a direct riposte to David Cameron's speech on Wednesday. There, Mr Cameron argued judgement and character are more valuable than experience. Today's reshuffle is designed to prove that argument wrong. But the move also has a secondary function, which is to relax those nervous about a left-ward drift in the government. Mr Brown can now speak out against 'fat cats' and push for much firmer regulation of the markets, while pointing at Mr Mandelson and other recruits, such as Sir John, as evidence of his continued occupation of the centre ground. Ian Dunt
Hutton could lose head in reshuffle
Rumours are circulating around Westminster that business secretary John Hutton could lose his head in the upcoming Cabinet reshuffle.Observers are predicting a minimal reshuffle, with Gordon Brown replacing transport secretary Ruth Kelly and a handful of more junior appointments. But government insiders say the current financial turmoil in the markets requires a heavy hitter in the Department of Business, Enterprise and Regulatory reform. Mr Hutton – considerably to the right of mainstream Labour opinion and a firm Blairite – has always been distrusted by Brownites. It is likely Mr Hutton would be moved, rather than dropped from government altogether. The most obvious location would be one of Des Browne's roles as defence secretary or Scottish secretary. Mr Browne is unlikely to retain both. Jon Cruddas, the left-wing backbench MP who impressed many party members with his conference statements, is tipped for a Cabinet position. You can read politics.co.uk's interview with Jon Cruddas here.
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