Osborne and Mandelson meet again

By Brian Wheeler BBC News political reporter

The two men were left surprised at the turn of events

Lord Mandelson and George Osborne have dined together for the first time since their infamous summer holiday meeting in Corfu.

The two men traded barbs at a Spectator awards dinner at Claridge's Hotel in London, where they were seated opposite each other at the top table.

Shadow chancellor Mr Osborne presented Business Secretary Lord Mandelson with a newcomer of the year trophy.

The peer, recently ennobled after a stint as European trade commissioner, said he was "delighted" to win an award that is normally given to new MPs.

'Naivety'

He added: "Having been marched down the political gangplank a few times it is great to be back on board, as they say in Corfu."

A previous meeting between the two this summer, at a Greek taverna on Corfu, sparked a bitter political row when Mr Osborne was alleged to have leaked details of their conversation about Gordon Brown to the newspapers.

Lord Mandelson jokes that the award may not be the best PR he could receive

Mr Osborne was subsequently forced to deny allegations - made by a mutual friend of his and Lord Mandelson's - that he had tried to solicit a donation from a Russian billionaire while he was staying on the island.

After accepting his Spectator award, Lord Mandelson could not resists a dig at Mr Osborne, who won the newcomer award last year, saying he was pleased to pip the shadow chancellor to an award which celebrates "naivety" and "endearing lack of judgement".

Mr Osborne, who was guest speaker, hit back in his speech saying he was "nonplussed" to be told he would be presenting an award to a Lord Mandelson of Hartlepool and Foy.

"Then I remembered - it was the guy I met on holiday," he joked. "You know how it is, the only other English guy at the resort. You swap stories about work and how it is back home and you think you are never going to see them again."

He suggested the two men spend next year's summer holidays in a rowing boat off Hartlepool, Lord Mandelson's former constituency, "a place neither of us have visited for some time".

The other winners include Lib Dem treasury spokesman and deputy leader Vince Cable, who was parliamentarian of the year, in recognition of his performance during the economic downturn, and London Mayor Boris Johnson, named politician of the year.

Baroness Manningham-Buller, the former director general of MI5 who dramatically opposed the plans for 42-day detention without trial for terror suspects, was named peer of the year.

Spectator editor Matthew d'Ancona said: "Vince Cable and Boris Johnson have been riveting personalities on the political stage this year, combining, in their different ways, rhetorical power, popular appeal, dogged determination and a ferocious devotion to the public they serve."