Labour on standby for Mandelson by-election

Labour officials have been ordered to prepare for a snap by-election if Peter Mandelson is appointed as the new European Commissioner.

Tony Blair is expected to confirm in the next 48 hours that Mr Mandelson will be Britain's next representative in Brussels.

To take the £163,453-a-year post, Mr Mandelson would have to resign his Hartlepool seat,

forcing a risky by-election. Party sources say Labour is looking to hold the election within the next few weeks and has started assembling a team to defend the seat.

Although Mr Mandelson had a majority of 14,571 at the last election-Labour could be vulnerable if the Liberal Democrats repeat the success they enjoyed in Leicester South last week.

However, party strategists believe it would be a straight Labour-Conservative contest.

Mr Mandelson's departure is expected to herald an endofterm reshuffle as the Prime Minister freshens his team in the wake of the Butler Report.

Downing Street is expected to press for Mr Mandelson to get a senior European post covering an economic portfolio.

The move would be a remarkable comeback for the former Cabinet minister, who was twice forced to resign from the Government, first over a home loan from fellow minister Geoffrey Robinson and later over the Hinduja brothers passport furore.