London 2012: Jowell Retains Olympic Job

Tessa Jowell was yesterday retained as Olympics minister in Gordon Brown's first cabinet despite losing her job as secretary of state for culture. In a reshuffle that effectively leaves London 2012 in the Department for Culture, Media and Sport but moves the minister responsible, Jowell will be based in the Cabinet Office and will retain responsibility for the project.

Specifically, Jowell will oversee the Government Olympic Executive (GOE), the DCMS unit responsible for liaising with the games. Jowell will continue to attend Cabinet and report directly to the prime minister but she will no longer have the seniority of a secretary of state. She will remain chair of the Olympic Board and be answerable to parliament.

Her replacement as culture secretary, James Purnell, a junior minister under Jowell in 2005, will have no direct influence on the largest project overseen by his department and will have about 70 civil servants working in his department but outside his control.

Olympic sources defended the unexpected changes, saying the move would bring continuity and make the most of Jowell's excellent relationships with stakeholders including Lord Coe, the chairman of the games organizing committee, and the London mayor, Ken Livingstone.

The move was criticized by the Conservative sports spokesman, Hugh Robertson, as "ill thought-out and confused" and the Guardian understands the restructuring was a late decision, confirmed at the weekend. As recently as 10 days ago Brown's inner circle were considering moving the construction element of the games to a new ministry which would handle major infrastructure projects.

That plan was abandoned and with Brown keen to promote Purnell, an alternative role had to be found for Jowell, who could not be expected to remain as a junior minister to a man who so recently worked for her. She has lobbied hard to retain the Olympics brief and it is understood she would have considered leaving the government had she not done so.

Last night Jowell said she welcomed the opportunity to continue working on the project and rejected suggestions that it was a confused appointment.

"I'm really, really pleased to be continuing as Olympics minister," she said. "It is a cause that I am absolutely passionate about and I fundamentally believe in the power of the games to improve people's lives. There is no question that this is a confusion or a muddle. I have long said that the Olympics needs enhanced ministerial capacity and Gordon has asked me to do that. The point of placing it in the Cabinet Office is that it reports directly to him and underlines the importance he attaches to it. In functional terms nothing has changed."

London 2012 sources defended the changes and welcomed Jowell's retention. "What we need is clarity and quick decision-making from government and Tessa will give us that continuity," said one. Insiders also rejected suggestions the moves will lead to tension between Jowell and Purnell. "They know each other very well and there's no question they have the temperaments and personalities to be able to make this work," said another.

As well as the Olympics Jowell is responsible for London, a position that will make her the government's main point of contact with Livingstone. The good relationship between the pair at a time when Livingstone was outside the Labour Party was one of the crucial factors in London's successful Olympic bid and Jowell will be expected to keep Livingstone on side for the new administration.

Purnell's appointment to a Cabinet post aged 37 is the latest stage in a meteoric career and was widely welcomed by the sporting community. An Arsenal fan, he was an advisor to Tony Blair in opposition and in government as a member of the No 10 Policy Unit, and was a member of the Football Task Force chaired by David Mellor.

He was elected to parliament in 2001, succeeding Tom Pendry in Stalybridge and Hyde, and has taken a close interest in football issues since entering parliament. He has close links to the Premier League and was involved in negotiations with the European Commission over the league's last television deal and the establishment of the Football Foundation.