Prescott delights in new role

Mr Prescott said his role would help him support Mr Blair

John Prescott has defied rumours his political career was all but over assuming responsibility for local government and the regions.

The deputy prime minister hailed the creation of a new office - clearly delighted that he was benefiting from the break-up of the department of transport, local government and regions.

These changes will enable me to support the prime minister more effectively

John Prescott

Former secretary of state Stephen Byers' responsibilities will now be shared between Mr Prescott and new Transport Secretary Alistair Darling.

Mr Prescott said in a statement: "I am delighted as deputy prime minister to see for the first time the creation of the Office of the Deputy Prime Minister as a central department in its own right.

"These changes will enable me to support the prime minister more effectively right across the government's domestic and international responsibilities.

'Heavy hitter'

He added: "Working at the heart of government and Whitehall it will bring together key cross cutting issues such as social exclusion, housing and regeneration with regional and local delivery."

New policy would be formulated and the white paper containing proposals for English regional devolution will be moved forward.

"These policies - better housing, jobs, combating poverty, renewing democracy - matter to people and I have spent all of my political life fighting for them."

A spokesman for GMB union said it was right for a "heavy hitter" like John Prescott to take charge of local government.

'Media had their scalp'

"It is clear that the deputy prime minister is one of the big winners in this reshuffle," he said.

"It would appear that reports of his demise have been greatly exaggerated."

Mr Prescott's return to what is part of his former brief was also hailed as timely by Bill Morris, general secretary of the Transport and General Workers Union.

Mr Morris added: "The media have had their scalp but now we want to see a return to government by the elected politicians...

"Let them now be freed up to concentrate on our transport, public services and manufacturing."