PETER Mandelson is to make a shock return to the Government in a Cabinet reshuffle, it has been reported.

CONTROVERSIAL politician Peter Mandelson is to make a shock return to the Government after Gordon Brown's first Cabinet reshuffle.

Mr Mandelson, who has twice quit the Cabinet in controversial circumstances and is currently Britain's European Commissioner, is set to return to one of his old jobs at the Department for Business, Enterprise and Regulatory Reform.

He would take over from John Hutton who was said to be heading for Defence where he will be replacing Des Browne, who is expected to leave the Government.

Elsewhere Chief Whip Geoff Hoon was said to be going to Transport to take over from Ruth Kelly who is standing down.

He is likely to be replaced by Deputy Chief Whip Nick Brown, while the Leader of the Lords, Baroness Ashton of Upholland, is to replace Mr Mandelson in Brussels.