Brown bolsters Cabinet, Mandelson recalled

British Prime Minister Gordon Brown overhauled his Cabinet yesterday, recalling old hand and former enemy Peter Mandelson in an effort to shore up his premiership at a time of economic crisis.

The surprise return of Mr Mandelson, the EU Trade Commissioner, will strengthen Mr 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.

Mr Mandelson will take on the office of Business Secretary and is expected to play a central role in a newly created economic council that will oversee the fallout from the economic crisis.

Twice a Cabinet minister under Mr Blair, Mr Mandelson also quit twice under a cloud and some Labour members said he was such a divisive figure that Mr Brown's bold and surprising move may not go down so well with the British public.

Mr Brown and Mr Mandelson have had many spats in a relationship going back 20 years. Initially close, the relationship soured after Mr Mandelson backed Mr Blair for the Labour leadership in 1994.

Speaking to reporters in Downing Street, Mr Mandelson said Mr 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," Mr Mandelson said.

Public support for Mr Brown, who served as Finance Minister for a decade under Tony Blair, slumped earlier this year to leave Labour 20 points behind the opposition Conservatives and on course for a wipeout at the next general election, due by May 2010.

But Mr Brown, 57, has seen support improve in recent weeks as voters worry about the untested Conservatives' ability to handle a crisis.