Blair's architect of school reform is moved by PM

The architect of the Government's school reform programme has lost his job as Education minister as part of Gordon Brown's reshuffle.

Lord Adonis, renowned as the Blairite champion of academy schools, will move to the Department for Transport. Last night it was suggested that differences of opinion between him and the Schools Secretary Ed Balls over the academies scheme was behind the move. Sources said Lord Adonis was more "gung-ho" over the programme than Mr Balls.

There were also suggestions that the move was a "quid pro quo" from Gordon Brown to Mr Balls to soften his opposition to the return of Peter Mandelson to the Cabinet.

Senior Labour figures were unhappy that Lord Adonis had been wooed by the Tories, with David Cameron offering him a ministerial position if they won the next election. The shadow Education Secretary, Michael Gove, said: "Everyone who believes in the integrity of the academies programme and the reform agenda in education will be disturbed to hear Ed Balls has kicked Adonis out of the education department. The fact that Lord Adonis has been moved ... emphasises how this reshuffle is about rewarding cronies, not about governing in the national interest."

Completing his reshuffle last night, Mr Brown confirmed there would be no job for the former deputy leadership candidate Jon Cruddas, who was said to have turned down a ministerial position.

There are however ministerial jobs for Chris Bryant, Sion Simon and Kevan Jones, who all signed the letter which forced Tony Blair to announce a timetable for his resignation in 2006.

The controversy over Peter Mandelson's appointment as Business Secretary continued yesterday as he became embroiled in a bizarre row over claims he "dripped pure poison" about Mr Brown during a private chat with the shadow Chancellor George Osborne. The two men clashed over their accounts of the summer dinner in Corfu, as Mr Mandelson condemned the claim as "straight out of the dirty tricks department at the Tory party", while Mr Osborne said his appointment would make the Government "more dysfunctional" than ever.

Mr Mandelson was forced to deny criticising the Prime Minister at the Taverna Agni. He told Sky News: "I'm not for one second suggesting that George Osborne has put this story in the press, I don't think that's his style but I think it became an irresistible story for the Tory party headquarters. I would no sooner talk about in public what he said to me about his colleagues than I hope he would about what I said about my colleagues, but I can assure you there was no poison being dripped anywhere, either by him or by me."

Mr Osborne said: "I don't think what he told me was any different from what he's been telling anyone recently. And if the problem with this government is it's divided and dysfunctional, bringing Peter Mandelson in is going to make it more dysfunctional and more divided."

Labour was forced to quash speculation that Mr Mandelson or another high-profile figure such as Alastair Campbell might be drafted in to co-ordinate Labour's next general election campaign. Mr Mandelson said: "I think you'll find that somebody else is going to be affirmed in that role, somebody I know and trust and admire."

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