TONY BLAIR last night formally installed one of his closest aides, Mr Peter Mandelson, as the head of Labour's election planning team.

The Hartlepool MP and key Labour ``spin doctor'' has given up his brief as the party's Civil Service spokesman to concentrate on election strategy.

The announcement formalises a situation that has been in being for some weeks since Mr Mandelson took over the running of operations at Labour's hi-tech media centre at Millbank Tower in Westminster.

Mr Blair, who was putting the final touches to his Front Bench reshuffle, also confirmed Ayrshire MP and former Transport spokesman Brian Wilson as a Shadow Minister with responsibility for election planning.

Other appointments are Glenda Jackson who moves up to become a Shadow Minister at Transport, Ann Coffey, who becomes a Shadow Health spokeswoman, while Tommy McAvoy - MP for Glasgow Rutherglen since 1987 - Kevin Hughes, Angela Eagle and Clive Betts join the Whip's office.

Mr Mandelson is a controversial figure in Labour circles, having in the past clashed with senior Front Benchers such as Gordon Brown and John Prescott, who have privately blamed him for planting hostile stories in the press.

However, even his critics do not question his talents as one of the ablest party tacticians at Westminster.

Mr Blair's aides said his appointment and that of Mr Wilson reflected the determination of the leadership to ``move up a gear'' in their election planning programme.

Meanwhile, Labour yesterday released figures showing that the number of jobs in British manufacturing had fallen from more than seven million in 1979 to below four million today.

Accusing the Government of failing manufacturing, the party said Germany's manufacturing output was now two-and-a-half times greater than the UK's.

Manufacturing investment in the UK was now lower than in 1979, and was reviving more slowly than in previous recoveries, it alleged.

Shadow Chancellor Gordon Brown said: ``Manufacturing industry is the engine room of the economy.

``Labour does not believe it is possible for Britain to trade its way into the future as an economy relying only on services.

``A robust manufacturing base is a crucial element in a modern competitive economy. The facts revealed in our new dossier show how far we have fallen behind our major competitors.

``The Tories have failed the manufacturing sector.''

Labour says it will help manufacturing by ensuring a stable and predictable framework for decision-making in monetary policy, with tough rules on spending and borrowing.

It also intends to facilitate access to finance, encourage long-term investment, and boost education and skills among the workforce.

Labour line-up

TONY BLAIR last night completed the changes and appointments to his full Front-Bench team.

This is now the final list. Names followed by * indicate an elected member of the Shadow Cabinet.

Leader: Tony Blair.

Deputy Leader: John Prescott.

Duchy of Lancaster (Public Service): Derek Foster, Richard Caborn.

Treasury and Economic Affairs: Gordon Brown*, Alistair Darling, Dawn Primarolo, Mike O'Brien, Alan Milburn.

Foreign Affairs: Robin Cook*, Joyce Quin, Tony Lloyd, Derek Fatchett.

Health: Chris Smith*, Tessa Jowell, Kevin Barron, Ann Coffey.

Home Affairs: Jack Straw*, Alun Michael, Doug Henderson, George Howarth.

Social Security: Harriet Harman*, Henry McLeish, John Denham, Malcolm Wicks.

Education and Employment: David Blunkett*, Stephen Byers, Bryan Davies, Peter Kilfoyle, Estelle Morris, plus Ian McCartney, Peter Hain (concentrating on employment).

Food, Agriculture and Rural Affairs: Gavin Strang*, Elliot Morley, Llin Golding.

Trade and Industry: Margaret Beckett*, Adam Ingram, Stuart Bell, Nigel Griffiths, John Battle, Kim Howells, Geoff Hoon, Barbara Roche.

National Heritage: Jack Cunningham*, Mark Fisher, Tom Pendry, Lewis Moonie.

Transport: Andrew Smith, Keith Bradley, Glenda Jackson.

Northern Ireland: Marjorie Mowlam*, Tony Worthington, Jim Dowd, Eric Illsley.

Scotland: George Robertson*, John McFall, Malcolm Chisholm, Helen Liddell.

Wales: Ron Davies*, Win Griffiths, Rhodri Morgan.

Overseas Development: Clare Short*, George Foulkes.

Environment and London: Frank Dobson*, Hilary Armstrong, Nick Raynsford, Keith Vaz, with Graham Allen (health and safety).

Defence, Disarmament and Arms Control: David Clark*, John Reid, Paul Murphy, John Spellar.

Leader of the House: Ann Taylor*, Jeff Rooker.

Environmental Protection: Michael Meacher*, Joan Ruddock.

Disabled People's Rights: Tom Clarke*, Gordon McMaster.

Law Officer: John Morris.

Lord Chancellor's Department: Paul Boateng.

Women: Janet Anderson.

Election Planning: Peter Mandelson, Brian Wilson.

Whips Office: Chief Whip, Donald Dewar; Deputy chief whip, Nick Brown; Pairing whip, George Mudie; Whips, Dennis Turner, John Cummings, Joe Benton, Jon Owen-Jones, Eric Clarke, Bob Ainsworth, Eric Martlew, David Clelland, Jane Kennedy, Greg Pope, Bridget Prentice, Tommy McAvoy, Kevin Hughes, Angela Eagle, Clive Betts.