Birmingham MP Liam Byrne was given the role of cabinet ‘fixer’ under the Government reshuffle that saw the surprise return of Labour’s “Prince of Darkness” Peter Mandelson to front line politics.

Mr Byrne’s appointment is in recognition of his success as West Midlands Minister in “banging heads together” in the region to help get large projects off the ground, such as the rebuilding of New Street Station.

The Hodge Hill MP has given up his brief as Immigration Minister to take on the new role which will require him to use his negotiation skills to get Government departments working effectively together.

The reshuffle, however, was branded as not enough in itself to reverse Labour’s waning popularity among the public by Birmingham’s Labour MP for Northfield Richard Burden.

Mr Byrne’s latest appointment is another step up the political ladder in a meteoric rise for the 38 year-old who only entered Parliament four years ago. He said last night: “It’s a huge privilege to serve at the heart of government helping maximise our power and punch, delivering change for Britain.

“This is a time when we need vision, leadership and action from Government, not warm words or sound-bites or cuddly speeches.”

Accepting his post as Minister for the Cabinet Office, Mr Byrne paid tribute to his constituents who he claimed had given him “inspiration, passion, ideas and energy”.

“If the Prime Minister has liked what I’ve said and done, it’s only because I’ve spoken with the voice of Hodge Hill. It is West Midlands wisdom at its best,” he said.

His appointment was over-shadowed by the unexpected return of Mr Mandelson to Cabinet as Business Secretary.

The recruitment of the man most closely associated with “Labour spin”, who was twice forced to resign from Tony Blair’s Government, left many stunned both within and outside the Labour Party.

Former Home Secretary David Blunkett described it a “masterstoke” that would unite the party, while Conservatives dubbed it a stunning failure of judgment on the part of Gordon Brown.

The Prime Minister said he wanted “serious people for serious times” and was keen to draw on Mr Mandelson’s experience in global trade.

Other moves in Mr Brown’s first major reshuffle saw Lord (Digby) Jones of Birmingham step down as Trade Minister to return to the private sector.

John Hutton becomes Defence Secretary, replacing Des Browne, who steps down from Government.

Margaret Beckett rejoins the Government as Housing Minister replacing Caroline Flint. Tony McNulty, Policing Minister, is promoted to Employment Minister.

Ed Miliband, whose job Mr Byrne takes, will head up a new Department of Energy and Climate Change and Lord Drayson returns as a minister at the Department of Skills.

Speaking after the announcement, Mr Burden said: “Will a change of people mean that people will change their vote in the future?

“Of course it won’t. The key thing is how far we are able to engage with people and whether what we say we are going to do makes sense to them. That is the challenge for all political parties.”

Mr Burden welcomed Mr Byrne’s appointment, describing him as a “talented Minister” whose rapid rise was well deserved and added he had been “impressed” in his dealings with Mr Mandelson in his former role as Trade and Industry Minister.

Labour MP for Perry Barr Khalid Mahmood said he was “absolutely flabbergasted” to learn about Mr Mandelson’s return to Government.

“Peter has got a history, but the guy has got a huge amount of ability and talent and for him to come back can only add to the Cabinet,” he said.

In a statement Lord Jones said: “I want publicly to thank Gordon Brown for giving me this unique opportunity and for having the courage to allow me to retain my political independence.

“I have spent 16 fantastic months showcasing ‘Brand Britain’ around the world and know that the skills and talents that we so often take for granted here at home are highly prized in every country that I have visited.”