Daily Mail 5th October 2008
David Blunkett may return to the Cabinet despite past clashes with Mr Brown
Gordon Brown plans to bring David Blunkett back into the Cabinet in another dramatic bid to revive Labour's political fortunes.
The Prime Minister is considering a recall for the former Home Secretary – who, like Peter Mandelson, has been forced to resign from the Cabinet twice – as part of a second ministerial shake-up in the New Year.
But last night, the Prime Minister's first reshuffle, announced on Friday, was already in danger of unravelling as:
• Friends of Foreign Secretary David Miliband hit out at Mr Mandelson, claiming he had sabotaged his attempt to succeed Mr Brown.
• Mr Brown reportedly prepared to sack International Development Minister Douglas Alexander as his Elections chief.
• And Schools Secretary Ed Balls was forced to deny having tried to block Mr Mandelson's return.
The row over Mr Brown's astonishing decision to risk his Prime Ministership by approving a Cabinet comeback by Mr Mandelson continued to divide Labour MPs yesterday.
Labour whips spent the day on the phone trying to prevent an 'anti-Mandelson' revolt at tomorrow's Commons meeting of the backbench Parliamentary Labour Party group.
But Mr Brown's allies said the Prime Minister was convinced he had made the right decision in appointing Mr Mandelson as Business Secretary, and was prepared to make further bold changes to the Government line-up.
Most significantly, they said he was considering finding a way to give a senior Government post to Mr Blunkett, despite his chequered past.
The return of old Cabinet hands such as Mr Mandelson and Margaret Beckett has already prompted one Tory official to comment: 'This isn't a government of all the talents so much as a government of the living dead.'
Mr Blunkett resigned as Home Secretary in 2004 over claims that he used his office to speed up a visa for the nanny of his lover, society hostess Kimberly Quinn.
Months after being recalled by Tony Blair following the 2005 Election, Mr Blunkett resigned as Work and Pensions Secretary when he admitted he had breached the ministerial code by not getting clearance for three posts he took on after leaving the Cabinet.
His double resignation is not all he has in common with Mr Mandelson.
Mr Blunkett is another Blairite who clashed repeatedly with Mr Brown when they sat in Mr Blair's Cabinet.
Some of Mr Brown's supporters believe Mr Blair used Mr Blunkett deliberately to undermine Mr Brown – a charge rejected by Mr Blunkett.
Eager: Just hours after his appointment, a casually attired Peter Mandelson gets to work as he walks down a London street
Mr Blunkett displayed his new-found loyalty to Mr Brown on Friday by leading the praise for the Prime Minister's decision to bring Mr Mandelson back into the Cabinet.
Asked if Mr Brown hoped to include Mr Blunkett in the next reshuffle, a Downing Street spokesman said yesterday: 'The Prime Minister has a very high regard for Mr Blunkett.'
Meanwhile, Labour insiders revealed that a bitter row was raging over Mr Mandelson's recall – and its devastating impact on David Miliband's Labour leadership ambitions.
One senior Minister said: 'Peter's return means David Miliband's hopes of getting Gordon out are dead and buried.
'If Miliband wants to challenge Gordon he has to get past Peter first, and he wouldn't dare.'
Mr Miliband's campaign to oust Mr Brown was secretly backed by Mr Blair himself, along with a host of other senior Blairite figures including former Ministers Alan Milburn and Stephen Byers, ex-Labour general secretary Margaret McDonagh and Mr Blair's Downing Street aide Baroness Sally Morgan.
Mr Milburn turned down job offers from Mr Brown, partly because he feared it would undermine any attempt to oust him.
Members of Mr Blair's circle sympathetic to Mr Miliband felt let down when Mr Blair's former spin doctor Alastair Campbell refused to support the Foreign Secretary's high-risk challenge, claiming he did not have the skills or stature needed to be Prime Minister. Mr Mandelson was also unenthusiastic from the start.
Mr Miliband's poor speech at the Labour conference – together with a series of ungainly photo opportunities – led to a sudden collapse in support.
Egged on by Mr Campbell, another former Labour foe who is now advising him, Mr Brown seized on the chance to recruit Mr Mandelson, effectively killing off the threat of a challenge by Mr Miliband – or any of the other Blairite MPs who called for Mr Brown to resign last month.
'Campbell and Mandelson defected,' was the bitter verdict of one Labour figure with close links to Mr Miliband. 'They know we will be beaten badly under Brown, and now David will not have the chance of offering better leadership.'
Others say Mr Miliband is responsible for his own fate and that once his campaign flopped, and with no alternative vote-winning successors to Mr Brown, Mr Blair and his followers had no choice but to rally round Mr Brown.
'The ultra-Blairites are crushed for good,' crowed one of Mr Mandelson's allies. Mr Blair's supporters say that if, as expected, Labour loses the next Election, they will back Work and Pensions Secretary James Purnell as Mr Brown's successor, not Mr Miliband.
A new poll suggests Labour could lose 164 seats in the next Election, handing a landslide victory to the Tories.
The poll for today's News of the World – which puts the Tories on 43 per cent, Labour on 34 per cent and Lib Dems on 15 per cent – would give David Cameron's Conservatives a 78-seat majority.
In a further blow to Mr Miliband's leadership ambitions, some Labour MPs say that his personable younger brother, Ed, promoted to the high-profile new role of Climate Change Minister in the reshuffle, now has a greater chance of becoming Labour leader.
The tensions between the rival Blairite and Brownite Cabinet Ministers were underlined when the origin of Mr Brown's remark that the economic crisis meant it was 'no time for a novice' to lead Britain was revealed.
The jibe, widely seen to be aimed not just at David Cameron but also David Miliband, was suggested by Schools Secretary Ed Balls.
The setback to the Foreign Secretary's leadership hopes is a major boost for Mr Balls, who sees himself as a potential successor to Mr Brown. Mr Balls, a bitter enemy of Mr Mandelson, yesterday denied reports he begged the Prime Minister to reverse his decision to appoint Mr Mandelson.
The Mail on Sunday has established that Mr Balls did warn Mr Brown of the dangers of bringing back Mr Mandelson in a tense Downing Street showdown last week.
However, Mr Brown ignored his advice and Mr Balls did not learn of the appointment until after the Prime Minister had agreed it with Mr Mandelson.
Mr Brown is expected to wield the axe again soon to replace his Elections chief, International Development Minister Douglas Alexander.
Relations between Mr Brown and loyal confidant Mr Alexander never recovered from the on-off Election shambles a year ago. Mr Alexander urged the Prime Minister to call an Election, but when Mr Brown changed his mind, found himself frozen out.
'Douglas has been deeply unhappy for some time and wants out,' said a Labour source. Mr Mandelson, who made his name as an Election strategist, may add Mr Alexander's campaign job to his wide ranging portfolio.
There was further disagreement over reports that Defence Secretary Des Browne was annoyed at the way that he was replaced by former Business Secretary John Hutton.
According to one account, Mr Hutton indicated that unless he was given the MoD post, he may have decided to step down.
'The PM had little room for manoeuvre and Des was not happy with the way he was treated,' said an insider.
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