LIVERPOOL Wavertree MP Jane Kennedy was made deputy environment minister in the Prime Minister’s reshuffle of junior government roles yesterday.

But Merseyside MP Derek Twigg lost his job on the government payroll. The member for Halton was under secretary of state for defence and minister for veterans at the Ministry of Defence.

Ms Kennedy becomes minister of state at the department for environment, food and rural affairs and will report to environment secretary and Leeds MP Hilary Benn. She was previously financial secretary at the Treasury.

The controversial new business secretary Peter Mandelson said yesterday he would “make a contribution” to Labour’s next general election campaign, but has not been brought back to mastermind it.

Mr Mandelson, who returned to the Cabinet in a shock move on Friday, also revealed he had spoken to Tony Blair before agreeing to take the role.

And he insisted that any past disputes with Gordon Brown were behind him, saying they were both part of the “Labour family”.

Mr Mandelson said the Government’s main priority would be tackling the tough economic circumstances facing the country.

Comparing the economy to an ill patient, he said the overall task would be to nurse it back to health.

But when the time came to go to the polls, Mr Mandelson said, he would try to show the country what Labour had to offer.

“If I can play my part in that – along with other party members – and make a contribution, that’s what I want to do and that’s what I will do,” he said.