Alistair Darling is the new trade and industry secretary following a radical Cabinet reshuffle by prime minister Tony Blair.
The reshuffle comes after Labour lost 250 councillors as well as control of 16 town halls in yesterday’s local elections in England.
Darling, previously transport secretary, replaces Alan Johnson, who takes over Ruth Kelly’s role as education secretary.
John Prescott remains deputy leader of the party despite recent scandals. However he loses control of the Office of the Deputy Prime Minister, which is in charge of local government issues.
Kelly will take on his responsibilities, becoming the newly named local government secretary.
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