Peter Mandelson backs David Miliband to stay as Foreign Sec

[TrueBlueTerrier]

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Lord Mandelson, the business secretary, yesterday backed David Miliband to remain as foreign secretary, adding that he wanted to remain in an economic portfolio in an increasingly fraught reshuffle facing the prime minister after the European elections.

There have been suggestions that Gordon Brown would grant Mandelson his long term ambition of becoming foreign secretary. The rumour has been given some credence by some ministers close to Brown.

Under the plan Miliband would be appointed home secretary, replacing Jacqui Smith, who is widely expected to step down from the front bench.

The rumour was dismissed by Mandelson's office as an attempt to undermine the government's efforts to part privatise the Royal Mail.

Shifting Mandelson would allow a new face to be introduced at the business and enterprise department that could review the Royal Mail policy – highly unpopular on the Labour backbenches.

A spokesman said: "Peter sees his role very much continuing on the economic front because he wants to see through his industrial and business agenda and because he thinks David is making a considerable impact on foreign affairs".

Mandelson is holding meetings with backbenchers in groups of two or three to discuss his reforms in the hope of staving off a backbench rebellion when the bill has its second reading next month.

The shape of any reshuffle is largely dependent on how many in the cabinet survive the publicity over their property deals with their integrity intact. Indeed it is even possible that Brown will not stage one, but that is very unlikely.

At the moment the transport secretary, Geoff Hoon, and the communities secretary, Hazel Blears, look the most vulnerable, but there is huge resentment in Blears's circle that she feels she has been picked on by the prime minister when he described her behaviour as completely unacceptable.

Ministers who might join the cabinet include the local government minister, John Healey, with a possible return to the cabinet for Peter Hain, a former work and pensions secretary.

Hain resigned after he was found not to have declared £100,000 in donations to his deputy Labour leadership election, but the Crown Prosecution Service decided not to press charges.

There is expectation that Ed Balls, the children's secretary, will be shifted, even though he has a white paper to publish shortly.

Alan Johnson, the health secretary, and previously the holder of many portfolios, could also be asked to take on more of a role as a party spokesman in the run up to the general election.

Downing Street believes there is a broad ideological unity inside the cabinet and a conviction they can still win the next election so long as they can wrest the agenda back to the economy and public services reform.

Number 10 wants to take a tougher approach to the vested interests that prevent public service reform, a theme that Brown is likely to take up in speeches after the European elections.

[BELIAL]

Thats it then, Milipedes had it (poisonous little worm anyway)