Mandy's return is political

Gordon Brown claims he has recalled Peter Mandelson from his position as the EU Trade Commissioner to take up the position of Business Secretary because in these difficult economic times the UK needs experienced people in government and Mandelson has experience in abundance as he was also a former Secretary of State for Trade and Industry. The government spin is that Mandelson is back simply because of economics.

However, his appointment should be seen in political terms. Brown has brought his enemy back because it has allowed him to do several things:

• First, Brown is correctly seen as a factional politician who holds grudges against his enemies. This appointment allows Brown to play against type as an inclusive leader who puts the country first.
• Second, it is a defensive and slightly desperate move as Brown is trying to shore up his position in the Labour Party. Brown realises that one fairly decent conference speech is not enough to keep at bay the Blairites within his party and government who have been undermining his authority by briefing the media. By bringing back the arch-Blairite it sends out a message to the plotters that he is willing to compromise. It is undoubtedly defensive because a strong Brown would have preferred to banish Mandelson to the Falkland Islands rather than make him a peer and a powerful Cabinet minister.
• Third, it helps a disunited Labour Party look united. He can say he has a Cabinet of Blairites and Brownites which will work together in harmony. The people that founded New Labour - Brown, Blair (who is in regular contact with him), Mandelson and Alastair Campbell - are also said to have put aside their differences to work together again to help Labour cling on to power.
• Fourth, it provides Brown with cover. Bringing the Blairite Mandelson into government has allowed Brown to promote his cronies. Thus, those responsible for the "balti house plot" to oust Tony Blair in September 2006 which Brown claimed he knew nothing about have been promoted. Step forward Chris Bryant (Deputy Commons Leader), Sion Simon (Skills Minister), Kevan Jones (Defence Minister), Wayne David (Wales Office), Tom Watson (Cabinet Minister) and Huw Irranca-Davies (Defra). With the exception of Kevan Jones, the only meagre talent the others have is loyalty to Brown. One of the biggest rewards though goes to Nick Brown who has been promoted to Chief Whip. Brown would not have been able to get away with this had he not have had the cover of his Mandelson appointment because Nick Brown was seen as pivotal in helping force Blair out and is fiercely loyal to Brown.
• Fifth, and finally, Brown is attempting to drive home his current political message against David Cameron – that “this is no time for a novice.” Mandelson (and Margaret Beckett) are old hands and old faces which add some gravitas to what was quite a young Cabinet.

Mandelson's return is a shrewd political move but it is also defensive, desperate and not without its risks. Mandelson is an incredibly divisive and polarising figure in the Labour Party. Mandelson has a reputation for playing fast and loose with truth and honesty. The fact that he has had to resign twice from Cabinet positions means he has shown questionable judgement at times. Mandelson has an incredibly high media profile which means his every word will be scrutinised – Mandelson has a long track record of briefing against Brown – and any lapses of judgement will be seized upon. Brown is taking a huge gamble by bringing him back. Mandelson will be the only person in a Cabinet of pygmies who can stand up to Brown. Given the history of bad blood between the two, Brown will find it very difficult to deal with a dissenting Mandelson. But Brown has given himself the problem of appointing an almost unsackable Cabinet minister. If their relationship broke down again Brown would be in big trouble. As Fraser Nelson has noted: "... Peter Mandelson, a world-class plotter and intriguer. He put the skills to great effect in Europe, and it's an incredibly bold move by Gordon Brown to appoint him into his Cabinet because if things get pretty tough for Brown six months down the road, say if he loses this Glenrothes by-election, people will immediately look to Peter Mandelson to be the man who organises any kind of plot or coup."

Bringing Mandelson back is a very risky, some would say reckless, move from a Prime Minister known for his innate cautiousness.