TONY Blair asserted his grip on the Labour party machine last night as he propelled two Blairite modernisers into the centre of government despite objections from John Prescott and Gordon Brown.
Alan Milburn, the former health secretary, returned to front-line politics after resigning last year to spend more time with his family.
He will take a leading role in Labour's general election campaign after accepting the cabinet position of chancellor of the Duchy of Lancaster.
Mr Milburn, who has never been afraid to stand up to the chancellor, demanded particular terms before he accepted Mr Blair's invitation to return to the cabinet.
Alan Johnson, higher education minister and MP for Hull West and Hessle, will replace Andrew Smith as secretary of state for work and pensions.
A former joint general secretary of the Communications Workers' Union, Mr Johnson is expected to stand up to Mr Brown, who is reputed to try to call the shots in the Work and Pensions Department.
Michael Howard moved his shadow cabinet to the right in an unheralded reshuffle. John Redwood, a Eurosceptic, was appointed shadow deregulation secretary, and John Bercow and Damian Green, two centre-left Tories, were dropped.
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