The new business secretary, whose return has caused controversy within Labour, said the former PM told him it was "a no-brainer" to take the job.

Mr Mandelson told Sky News he was "surprised" about the offer but thought it was the "right thing to do".

He sought to allay concerns from some within the party about the move, saying "we are all part of the same team now".

And he praised Gordon Brown, saying he had "changed", and had a "very steady hand on the tiller".

'Family'

Speaking of his surprise appointment. Mr Mandelson said: "When times get tough, families pull together and that is what we are doing. It is all hands on deck