Rumours are circulating around Westminster that business secretary John Hutton could lose his head in the upcoming Cabinet reshuffle.

Observers are predicting a minimal reshuffle, with Gordon Brown replacing transport secretary Ruth Kelly and a handful of more junior appointments.

But government insiders say the current financial turmoil in the markets requires a heavy hitter in the Department of Business, Enterprise and Regulatory reform.

Mr Hutton – considerably to the right of mainstream Labour opinion and a firm Blairite – has always been distrusted by Brownites.

It is likely Mr Hutton would be moved, rather than dropped from government altogether.

The most obvious location would be one of Des Browne’s roles as defence secretary or Scottish secretary. Mr Browne is unlikely to retain both.

Jon Cruddas, the left-wing backbench MP who impressed many party members with his conference statements, is tipped for a Cabinet position.

You can read politics.co.uk‘s interview with Jon Cruddas here.