Peter Mandelson said he consulted Tony Blair before accepting his new job as Business Secretary.

The former Prime Minister told his friend the decision was a "no-brainer", leading to Mr Mandelson's shock return to the Cabinet.

It signalled the end of a 14-year feud with Gordon Brown, and Mr Mandelson said they were both part of the same "Labour family", adding: "When times get tough, families pull together and that's what we are doing."

His comments came as Mr Brown completed a wide-ranging overhaul of his junior ministerial team which saw major changes in every department.

The high profile job of immigration minister went to Phil Woolas, with Vernon Coaker gaining promotion within the Home Office to become police minister.

In an interview, 54-year-old Mr Mandelson said the new-look Government's main priority would be to deal with the economy, which he compared to a sick patient.

He confirmed he would "make a contribution" to Labour's next general election campaign, but insisted he had not been brought in to mastermind it.

This was later reiterated by Labour, which said International Development Secretary Douglas Alexander would continue in his role as general election co-ordinator.

Mr Mandelson conceded the offer from Mr Brown had been "unexpected", adding: "I took some time to say yes, but in the end I thought it was the only thing I could and should do."

The new Business Secretary pointed out that he had been away from Westminster for four years, which he described as "a lifetime".

He added: "During that time you get a different view, you get a different perspective on events and people.

"Gordon Brown has changed, he has become Prime Minister and in my view is a very, very steady hand on the tiller.

"I think he and the Chancellor, Alistair Darling, have really demonstrated strength and very real qualities during this crisis and are going to continue to do so, and I want to join their team."

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