Gordon Brown reshuffles cabinet

Brown8217;s office said in a statement that it would make an announcement on Friday once it was in a position to confirm formally changes to Cabinet and machinery of government.

The prime minister is expected to announce the formation of a crisis committee to deal with financial turmoil, modelled on a similar group of ministers and officials that meets to deal with security emergencies, media reported.

With economists saying Britain entered recession in the third quarter for the first time since the early 1990s, Brown needs to reassure the public he is the man to steer the country through the economic turmoil.

Public support for Brown, who served as finance minister for a decade under Tony Blair, had slumped but the Scot, 57, has seen support improve in recent weeks as voters worry about the ability of the opposition Conservatives to handle a crisis.

The outlook for Britain8217;s economy darkened further on Friday as a survey showed its services sector contracted at the fastest rate for at least 12 years and bellwether retailer John Lewis reported a plunge in sales.

Business groups welcomed reports of Mandelson8217;s appointment. Mandelson, who is not a member of the British parliament, is expected to replace John Hutton at the business ministry.