British Prime Minister Gordon Brown turned to old hand and former enemy Peter Mandelson on Friday in a government reshuffle aimed at shoring up his premiership at a time of economic crisis.
The surprise return of European Union trade commissioner Mandelson to government will strengthen Brown’s position within his Labour Party at a time of doubts over his leadership and sniping from other former allies of Tony Blair, analysts said.
Twice a Cabinet minister under Blair, Mandelson also quit twice under a cloud and some Labour members said he was such a divisive figure that Brown’s bold move may not go down so well with the British public.
Brown and Mandelson have had many spats. Initially close, the relationship soured after Mandelson backed Blair for the Labour leadership in 1994.
Speaking to reporters in Downing Street, Mandelson — returning as minister for business — said Brown was doing an ”exceptionally good job” and he was proud to have been asked to work in his government.
”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,” Mandelson said.
Public support for Brown, who served as finance minister for a decade under Blair, slumped earlier this year to leave Labour 20 points behind the opposition Conservatives and on course for a wipe-out at the next general election, due by May 2010.
But Brown (57) has seen support improve in recent weeks as voters worry about the untested Conservatives’ ability to handle a crisis. While still trailing, Brown has cut the deficit in the polls to about 10 points.
A key architect of Blair’s New Labour project that moved the party to the centre of British politics, pro-business Mandelson said in an interview this week the party must stay true to that ideal and avoid a drift back to the Left.
Experienced double act
With economists saying Britain entered recession in the third quarter for the first time since the early 1990s, Brown needs to reassure the public he is the man to steer the country through the economic turmoil before the election.
Brown and Mandelson ”will be a double act in a way”, said Phil Collins, Blair’s former speech writer.
The prime minister is expected to announce the formation of a crisis committee to deal with financial turmoil, modelled on a similar group of ministers and officials that meets to deal with security emergencies. He is also likely to create a new energy and climate change ministry under staunch ally Ed Miliband.
The outlook for Britain’s economy darkened further on Friday as a survey showed its services sector contracted at the fastest rate for at least 12 years and bellwether retailer John Lewis reported a plunge in sales.
Business groups welcomed reports of Mandelson’s appointment. Mandelson, who is not a member of the British Parliament, is expected to replace John Hutton at the Business Ministry. Hutton becomes defence minister, the BBC reported.
Mandelson was nicknamed the ”Prince of Darkness” in Britain for the behind-the-scenes role he played in reinventing Labour, which overturned years of Conservative rule with a landslide victory in 1997. Labour has been in power since.
”The best thing you can have in life is a good plotter on your side, and he’s clearly committed himself to the prime minister and to the government,” said David Blunkett, a former Labour interior minister. — Reuters