Peter Mandelson, business secretary

Reshuffle rumours emerge as party dog-fight begins

Reshuffle rumours emerge as party dog-fight begins

By Ian Dunt

Rumours of a summer reshuffle have begun to emerge from Westminster, as the prime minister contemplates bringing forward an autumn renewal project to put the expenses scandal behind him.

The most interesting rumour is that Peter Mandelson could be moved from his business brief over to the Foreign Office.

The role would suit the former European Union trade commissioner, who is perfectly accustomed to dealing with complex international negotiations.

It would also form a suitable reward for his new commitment to a Brownite Labour party.

The business secretary has buried the hatchet with Gordon Brown, despite their previous animosity, and formed close bonds with Ed Balls, children’s secretary and Mr Brown’s protégé.

The move would lift former leadership challenger David Miliband from the post, and send him probably to the Home Office or Mr Balls’ department.

Current home secretary Jacqui Smith, who appears to have been irredeemably damaged by an expenses investigation, her husband’s movie habits and a generally below-par performance on controversial issues, is keen to concentrate on her constituency.

Any reshuffle would have to wait until after the local and European elections, which are expected to be particularly bruising for Labour.