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Defence
The demise of Des Browne as Secretary of State for Defence and Scotland has shaken the Armed Services chiefs, who had told Downing Street that it was important to have continuity during a period of key decisions over Iraq, Afghanistan and equipment projects (Michael Evans writes).
The feeling inside the Ministry of Defence was that their message had got through and that Mr Browne, below, would remain at the helm.
According to officials close to the former Defence Secretary, however, Mr Browne made it clear to the Prime Minister that he no longer felt it was appropriate to have two portfolios. Officials said he told Gordon Brown that the Armed Forces did not feel it was right for the Defence Secretary to share his ministerial time with Scottish affairs.
He told Mr Brown that he would prefer to keep defence but give up Scotland. The Prime Minister, however, offered him Scotland and Northern Ireland as a joint ministerial package. Mr Browne rejected the offer and his Cabinet career came to an end.
The Times estimated, on the basis of freedom of information requests to the MoD, that Mr Browne was having to spend between 15 per cent and 20 per cent of his time on Scottish matters, including visits to Scotland, heading up debates in the Commons and holding meetings with officials from the Scottish Office.
There were even reports that Mr Browne’s health was suffering because of the pressure of the work, although he had recently started going to the gym. Military chiefs were keen to keep Mr Browne because defence is a big and complicated brief and now they and senior civil servants will have to arrange familiarisation visits for the new Defence Secretary to Iraq, Afghanistan and other key areas.
Two issues, in particular, will now have to be placed in the hands of the new man, John Hutton - the drawdown timetable for Britain’s troop presence in southern Iraq, and key decisions required on the equipment programme.
Europe
Gordon Brown was asked if he could appoint a woman to replace Peter Mandelson in Brussels to help to improve the gender profile of the European Commission (David Charter writes).
Mr Brown, who did not want to appoint an MP and risk another by-election defeat, obliged by appointing 52-year-old Baroness Ashton of Upholland, the former leader of the House of Lords.
Lady Ashton made a secret visit to Brussels on Tuesday and Mr Brown won agreement from the President, José Manuel Barroso, that she would inherit the trade job. She will bring the number of female commissioners to ten out of 27.
Lady Ashton must undergo a grilling by MEPs before taking up a post in which her predecessor failed in his main objectives: a world trade deal; Russian membership of the World Trade Organisation; and a level playing field for trade relations with China.
Although it is only a temporary job, lasting until the end of the commission’s five-year mandate next autumn, she will undoubtedly last longer than she did as Farming Minister after Tony Blair’s summer 2006 reshuffle. She refused to accept the role as a part-time adjunct to her post overseeing human rights and civil justice policy at the Department for Constitutional Affairs and quit after four days.
Born Catherine Ashton in Upholland, in Lancashire, she studied economics at London University before joining the Campaign for Nuclear Disarmament where she worked from 1977-79 as an administrative assistant, becoming an elected vice-president after she left.
She became a Labour peer in 1999. Married to the journalist and pollster Peter Kellner since 1988, she has two children and three stepchildren.
Lady Ashton will have to grapple with the difficult issue of trade relations with China.
Energy
Ed Miliband, 38, the Foreign Secretary’s younger brother and one of the Prime Minister’s closest confidants, is to lead a new department of energy and climate change. The decision to create the department was welcomed by environmentalists, who described it as a positive sign of a more coherent approach to tackling global warming.
Energy is currently part of the Business Department and climate change is the responsibility of the Department of Environment.
Mr Miliband will be under pressure to ditch plans for a new coal-fired power station in Kent.
He has spent much of the past 12 months behind the scenes advising the Prime Minister and helping to draw up the manifesto for the next general election. In his new role, he will have cross-Whitehall responsibility for managing carbon budgets and ensuring that targets to cut emissions are delivered in the public and private sector.
Regarded as affable and articulate, Mr Miliband has had a meteoric rise, appointed to the Cabinet last year after being an MP for Doncaster North just two years. Like his older brother, David, Mr Miliband studied politics, philosphy and economics at Oxford.
The Party
Gordon Brown moved to reassert his authority among Labour MPs by returning Nick Brown, one of his longest serving allies, to the post of chief whip (Sam Coates writes).
In a surprise move the position will no longer be a full member of the Cabinet - effectively demoting the office. Instead Mr Brown will have the right to attend Cabinet.
The decision not to give him the status or salary of his predecessor will be seen as a recognition that Nick Brown is not universally popular within the party.
He first became chief whip in 1997 when Tony Blair entered office, but was moved a year later. He became Minister for Agriculture, where he stayed until 2001 before taking the rap for the foot-and-mouth debacle.
MPs said yesterday that the move would bring Downing Street closer to the whips’ office, suggesting Mr Brown would be better able to stand up to the Prime Minister than his predecessor. Rebel MPs were quick to praise the new chief whip as a “master of the dark arts” and “worthy opponent”.
Women
There will be five women in Gordon Brown’s new Cabinet after the departure of Ruth Kelly (Emily Gosden writes). Baroness Royall of Blaisdon takes over from Baroness Ashton as Leader of the House of Lords; Jacqui Smith, Harriet Harman, Hazel Blears and Yvette Cooper remain in their posts.
Margaret Beckett will be able to attend all Cabinet meetings.
Mrs Beckett, below, inherits the role of Housing Minister from Caroline Flint, who may now attend only when her new portfolio is discussed as Minister of State for Europe. Tessa Jowell and Baroness Scotland of Asthal are also demoted from full-time to part-time attendees while Beverley Hughes, the only woman previously attending part-time, retains the same arrangement. Although Mr Brown made Jacqui Smith the first female Home Secretary he has not concerned himself with numbers of women to the same extent as his predecessor. He may feel that with impending recession it is less important - to himself and, perhaps, voters - to see lots of female hands among those on deck.
At a glance
In
Peter Mandelson EU Trade Commissioner becomes Secretary for Business, Enterprise and Regulatory Reform
Margaret Beckett Backbencher becomes Housing Minister
Stephen Carter Prime Minister’s aide becomes Minister for Communications, Technology and Broadcasting in the Lords
Paul Myners Chairman of Guardian Media Group becomes Minister for the City in the Lords
Out
Ruth Kelly (former Transport Secretary)
Lord Jones of Birmingham (former Trade Minister)
Des Browne (former Scotland and Defence Secretary)
Baroness Ashton of Upholland (former Leader of the Lords. Replaces Mr Mandelson)
Moved
John Hutton From Business Secretary to Defence Secretary
Ed Miliband From Cabinet Office Minister to Energy and Climate Change Secretary
Geoff Hoon From Chief Whip to Transport Secretary
Liam Byrne From Immigration Minister to Cabinet Office Minister
Jim Murphy From Europe Minister to Scotland Secretary
Caroline Flint From Housing Minister to Europe Minister
Tony McNulty From Home Office Minister to Pensions Minister
Baroness Royall of Blaisdon From Chief Whip in the Lords to Leader of the Lords

Sam Coates's blog about Westminster, politics and spin
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What more appropriate than a woman to replace Mandelson.
Brian P O Cinneide, eThekwini, Afrika Borwa