As Ed Milliband dithered over calls to appoint Mandelson as his Spin Doctor, David Cameron shocked Westminster by announcing Mandelson would join the Cameroons. The PM said people should not be surprised because, philosophically, Lord Mandelson had always been closer to New Conservatism than to Red Ed Old Labour. And, of course "Petesy" was godfather to the Cameron children, and he and Mandy had regularly holidayed together in Brussels.
Cameron said details of the appointment were still being finalized, but confirmed that Mandy's main role would be Secretary of State for Business, Transport and Environment, in which role he would look afresh at the historical HS2 offering championed by the Lib Dems. Mandy also takes on some largely ceremonial roles, including First Lord of the Cabinet and First Deputy Prime Minister.
Asked how Mandelson's appointment would fit in with the Coalition, the PM said perfectly, because Mandy despised the Lib Dems as much as the Conservatives did.
Note to Editors - Lord Mandelson will issue a press release detailing the Cabinet Reshuffle within 48 hours.