Exactly ten years ago, I accompanied the Trade and Industry Secretary of the day on a fact-finding trip to Silicon Valley, during which he famously declared that new Labour was “intensely relaxed about people getting filthy rich”.

A decade on, Peter Mandelson, now rebranded Lord Mandelson, is back at 1 Victoria Street, home of his old department now rebranded Berr. The job title has changed a bit. The job spec has been transformed. It is not about people getting filthy rich in the boom. It's about people getting by in the bust.

In his first few days in the job, Lord Mandelson has made clear that he sees his brief as helping business through the downturn. John Hutton, his predecessor, was viewed as very business-friendly. Lord Mandelson appears determined to outdo him. He has been asking business leaders for their best ideas and they have been impressed with his willingness to think radically.

He has already infuriated the TUC by launching a review of new rights for parents to request flexible working. It seems to have had a cool reception from some of his ministerial colleagues, as well. But the CBI approved, saying that it was not right to put extra burdens on business in the present climate.

Other ideas kicking around include postponing the requirement for small businesses to exclude four bank holidays from employees' holiday entitlement (if they don't do so already). Lord Mandelson is also talking about getting local authorities to pay on time (a big bugbear for small businesses) and getting HM Revenue & Customs to loosen up a bit (a big bugbear for all businesses).

On the other side of Parliament Square, the Chancellor is proposing to bring forward government capital projects to help the struggling construction industry. This is a sensible move, though the real prize would be to speed up the sclerotic government procurement process.

Bringing forward the spending will put further pressure on the horrible government finances. But it is surely the right thing to do now, as long as the Chancellor provides a credible plan for getting the finances back on track in the medium term.

Business will also get some benefit from Flash Gordon's bank bailout package, which should gradually free up the supply of credit.

But the biggest problem for business now is not costs, red tape, government procurement or the cost of borrowing. It is consumer demand. And the single action that would have the biggest impact on consumer demand would be another chunky cut in interest rates. Yet that is not in Lord Mandelson's gift, or even Gordon Brown's.

If only someone hadn't made the Bank of England independent.

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