Latest news
Government reshuffle: overview and analysis
The party conferences are over but the political drama continues. With his reshuffle, the Prime Minister surprised commentators with his boldness, and wrong-footed pundits who had expected a limited reshuffle. True, the main offices of state are untouched, but make no mistake, this is a significant exercise.
Overview
The Prime Minister presented the reshuffle as a response to the global economic crisis, but the new line-up is as much about politics and pragmatism.
The new Department for Energy and Climate Change, first mooted a year ago, recognises that sustainability issues have outgrown an under-performing DEFRA. Keeping Alastair Darling and David Miliband in their current roles makes sense, given the need for stability in the face of world events.
But politics is in evidence, too. This reshuffle is nothing short of a relaunch, and contrasts significantly with September’s modest attempts to reinvigorate the Government. New departments and teams, the formation of a new Council focused on the economy; these changes are significant and will change the political landscape, at least in the short term.
Brown is in a stronger position after the post-conference polls, and the global financial crisis has boosted his battered authority. On the other hand, senior Cabinet figures were deeply unhappy with the handling of Ruth Kelly’s resignation, and dismayed by Brown’s reluctance to champion New Labour principles in
Balancing Labour party factions
Easily the most spectacular appointment is the return of Peter Mandelson to the Government after four years in
Brown has also been careful to keep potential enemies well within the Cabinet tent. There is no move for James Purnell or Hazel Blears, both of whom have been guardedly critical of the approach over recent weeks. A further concession is the sidelining of Damian McBride, the irascible Number 10 press secretary, seen as largely responsible for the leak of Ruth Kelly’s resignation. Ian Austin, Brown’s political fixer and his Parliamentary Private Secretary has been moved to be a junior Whip.
But these gestures come at a price and the promotion of Nick Brown, one of Gordon’s closest allies, to Chief Whip shores up the PM’s control over Parliament. Significantly, those members of the attempted coup against Tony Blair in 2006 have also been rewarded: Chris Bryant, who is now Deputy Leader of the House and Sion Simon who becomes a junior Minister at DIUS.
Finally Lord Adonis, the arch-Blairite former education adviser, has been moved sideways to the Department of Transport. This removes Adonis from his comfort zone, in education, and provides him with a new and potentially difficult set of challenges. The Conservatives are already claiming that the departure of the architect of the academies programme is a victory for Ed Balls.
Leadership debate
The sense of immediate crisis in evidence before Labour’s
There are significant hurdles looming. The Glenrothes by-election, played down by Number 10, remains a huge test. There will also be high expectations of the Pre-Budget Report, which will need to be more robust than last year, when Labour was wrong-footed by Conservative proposals on inheritance tax.
The Department for Energy and Climate Change
The new Department for Energy and Climate Change is responsible for a more coordinated approach than BERR and Defra could separately manage. In previous negotiations over energy policy and environmental impacts, Defra lost battles with BERR. Green groups will hope that the creation of DECC indicates a rebalancing of priorities and have welcomed the move, suggesting that it should mean a more joined-up approach to cutting emissions and delivering sustainable energy policies.
Climate change now has a specific Cabinet-level Minster in Ed Miliband, one of Labour’s brightest young stars, although the specific remit of the Department is still being worked out. A key issue will be nuclear power, which has the potential to address the energy security challenge and help meet climate change targets but will continue to inflame environmentalists. These changes leave BERR as more purely business focused and Defra with the rest of its environment-linked sprawling portfolio, covering rural affairs, food, waste and various other issues.
A National Economic Council
The global economic crisis has been addressed in Brown’s reshuffle to reinforce the message that the PM is in control of the economic situation and doing all he can to protect
Moreover, the creation of the National Economic Council stakes out new ground in the management of the economy. This Committee is effectively a cabinet style structure which, rather like when there is a national emergency, will come together to target action on the economy. It has been established to respond quickly to economic shocks and provide both fixes and assurances to the public that action is being taken. The Council consists of a significant proportion of the new cabinet, and is linked to a new Regional Economic Committee.
The decision to replace EU Commissioner Peter Mandelson, one of the ‘big hitters’ of British politics who held the vital trade portfolio, with little known Baroness Ashton, may not be welcome in Brussels where Mandelson was widely respected, if not always liked.
New talent or experienced hands?
This reshuffle draws on experience over youth. Gordon Brown has drawn big hitters back into Government in order to make his case to the electorate, and to contrast with Cameron’s relatively young and inexperienced team. However, the reshuffle does see promotions for some of the rising stars with Jim Murphy promoted from Europe Minister to the Scottish Office. Liam Byrne, who has been a MP for just four years, becomes Minister for the Cabinet Office, with a seat at the cabinet table. His influence will be cemented with the move of Stephen Carter to the Lords, who was brought in by Brown to coordinate policy, research and communications at No 10.
Who’s in and who’s out
Ruth Kelly, Des Browne and Baroness Ashton leave the UK Government and there are some other interesting moves. Caroline Flint has been moved sideways as Europe Minister to make way for Margaret Beckett who does not get full Cabinet rank, but will attend. Baroness Royall becomes the new Lords Leader. The Prime Minister has also tinkered further with the Cabinet structure, so a number of Ministers of State are able to attend, including Tony McNulty, the new Minister for Employment. Finally Lord Drayson, who gave up his ministerial career at the MoD in 2007 to race cars, is back as Science Minister, also able to attend Cabinet.
Conservative Response
Brown’s moves and the creation of a new department forces David Cameron into a reshuffle he didn’t want. However, it also provides him with an opportunity to bring on junior shadow ministers such as Justine Greening and Ed Vaizey, who are seen to have performed well in recent months. But he’ll also have to make a tricky call about Caroline Spelman, currently under investigation by Parliamentary Standards.
Click here for the full list of the Government.