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Revealed: how Blair and Milburn are sidelining Gordon Brown (Sunday Telegraph, 28/11/2004)

Once he stood like a colossus over vast areas of Government policy, the heir apparent to the Labour crown. Now the Chancellor's grip is being loosened by rivals - with the backing of No 10. Patrick Hennessy, our Political Editor, reports

Alan Milburn, Labour's general election supremo, has launched an unprecedented operation to sideline Gordon Brown and seize control of key powers across Downing Street and Whitehall.

A leaked memo, obtained by The Telegraph, reveals for the first time how almost every area of the Government's domestic policy is now under the direct stewardship of either Mr Milburn or his deputy, Ruth Kelly.

The five-page document, dated October 27 and marked "restricted - management", also shows that Mr Milburn and Ms Kelly rigidly control access to Tony Blair.

The leak comes at a time of dramatically heightened tension between supporters of Mr Blair, who include Mr Milburn, and those backing the Chancellor, who will deliver his Pre-Budget Report this week.

It is the clearest evidence yet that Mr Brown has been sidelined in the Government's chain of command, with Mr Milburn taking over his former spheres of influence across Whitehall. Whole areas of policy, including pensions, industry, deregulation, welfare reform and incapacity benefit, all of which were previously regarded by Mr Brown as under the Treasury's control, are now supervised by Mr Milburn and Ms Kelly.

The memo shines revealing new light on why Mr Brown was so furious when the Prime Minister brought Mr Milburn, the former health secretary, back into the Cabinet in September as the Chancellor of the Duchy of Lancaster.