Peter Mandelson back in UK politics as Brown reshuffles cabinet

Mumbai: EU trade commissioner Peter Mandelson is back in the British cabinet, making a return to domestic politics amidst a reshuffle by prime minister Gordon Brown, media reports said.

Mandelson will replace Business secretary John Hutton while Hutton moves to the defence ministry, replacing Des Browne, the BBC and Sky News reported.

The return of Mandeleson, a key ally of former prime minister Tony Blair, assumes significance in the backdrop of Mandelson's call for reviving the New Labour in order to win the next election.

Mandeleson, who served as trade minister under Blair, had to quit following a row over British passports issued to the Indian millionaires – the  Hinduja brothers. Blair then  sent him to Brussels, in 2004, as UK's commissioner in the European Commission, the EU's executive arm.

The reshuffle is part of Brown's fightback of attempts to trigger leadership change amidst simmering discontent among disgruntled lawmakers within his own party.

While the opposition Conservatives have held a strong lead in opinion polls, the global financial turmoil has helped Labour narrow the gap.