LONDON, Oct. 3 (Xinhua) -- British Prime Minister Gordon Brown said here on Friday afternoon that the cabinet reshuffle is in the national interests in the difficult times.

Speaking at a press conference here in London, Brown said the reshuffle result are "changes needed to combat economic challenges faced by the government," as it brings together the "best team possible to work through economic problems."

Britain's Prime Minister Gordon Brown. He attends the launch of the UK Council for Child Internet Safety at the Science Museum, in central London on September 29, 2008. (Xinhua/Reuters Photo)

Brown announced that a National Economic Council will be set up to advice on measures to steer the economy through the current global crisis.

As part of the reshuffle, EU Trade Commissioner Peter Mandelson is to return to the government as the new Business Secretary. This is a surprising move to many since Mandelson has been twice forced to resign from Tony Blair's cabinet due to scandals.

European Union Trade Commissioner Peter Mandelson speaks to journalists at Downing Street in London October 3, 2008.(Xinhua/Reuters Photo)

Nonetheless, Brown regarded him as having "unrivaled experience to deal with trade and business issues," and that the new cabinet has brought together "serious people to deal with serious issues in serious times."

Mandelson who is no longer a member of the Parliament, has been conferred a peerage for life by the Queen.

Business Secretary John Hutton replaces Des Browne as Defense Secretary, while Geoff Hoon will replace Ruth Kelly who announced her resignation earlier during the Labor Party Conference, as Transport Secretary.

Current Defense Secretary Des Browne is to leave the government.

Ed Miliband will be the Secretary of State for Energy and Climate Change, which is a new post, while Jim Murphy will be the new Secretary of State for Scotland.

Brown has been rumored to start his cabinet reshuffle after the Labor Party Conference last week as a move not only to fight back at the Conservatives, which has been leading in the opinion polls for months ahead of the ruling Labor. It is also aimed to muscle up as a government in the face of current economic downturn and financial crisis in Britain.