Blair set to bring back Milburn

Tony Blair is set to stamp his authority on his Government by bringing key ally Alan Milburn back into the Cabinet and putting Foreign Secretary Jack Straw on notice that he may be sacked.

In a reshuffle that could come as early as this week, the Prime Minister is poised to give a senior role to the former health secretary less than 15 months after he quit the Government to spend more time with his family.

The arch Blairite is set to be given a formal role in drafting Labour's manifesto for the next general election and could even be appointed party chairman.

Some Government sources suggested today that the move could even see Gordon Brown sidelined from his usual role as chief election strategist, a decision that would be sure to enrage the Chancellor and his allies. The changes, together with fresh speculation that the Prime Minister is now determined to sack Mr Straw after the election, underline Mr Blair's determination to secure his legacy in a third term.

After his "wobble" in the spring over whether he should stay in office, Mr Blair wants to send out a clear message that he has no intention of leaving No10 early.

Under one plan being considered by Downing Street, current chairman Ian McCartney would retain his Cabinet status and work alongside Mr Milburn as joint chairman.

Mr McCartney would be used to drum up backing among traditional supportersand unions while Mr Milburn would become the "front man" for the Government on the media.

But another option is simply to formalise Mr Milburn's role in drafting the party manifesto for a third term. Schools Minister David Miliband, another of Mr Blair's key allies, is also being considered for such a post.

Mr Milburn shocked many when he quit the Cabinet last year, saying he wanted to spend more time with his partner Ruth Briel and their two young sons.

"You only get one chance to see your kids grow up and I'm taking it. I was lucky enough to be able to choose to trade time for money," he said.

"People don't realise how much time is taken up by ministerial business and how much strain it puts on family life."

Since quitting he said that life was "a

million times better". He recently suggested he would not return for two years at least but swiftly added: "You never say never."

By accepting a senior post without any daily departmental responsibilities, Mr Milburn would still be able to claim he had more time for his family.

Along with Peter Mandelson, Mr Milburn is one of Mr Blair's most trusted allies and has proved in the past that he is prepared to stand up to the Chancellor.

In another move to reassert the Prime Minister's authority, knives were out today for Mr Straw over his strengthening alliance with Mr Brown.

The Foreign Secretary is being blamed by some of Mr Blair's allies for leaking the Government's U-turn over a referendum on an EU constitution. Downing Street is said to be furious that the leak turned a difficult announcement into a shambles.

Mr Straw was subjected to a barrage of vitriolic briefing today, with one adviser to the PM saying: "Watch this space. Tony is very loyal to people, unless they f**k up or f**k him." Health Secretary John Reid hinted at a swift return for Mr Milburn. "You ask me if we miss people of the talents of Alan Milburn? Yes, by God we do, he is an immense talent," he said.

Among those tipped for Cabinet promotion are Higher Education Minister Alan Johnson and Financial Secretary to the Treasury Ruth Kelly.

But changes at Cabinet level are expected to be limited, with most appointments coming at minister of state level as Mr Blair seeks to groom some of his best younger stars for promotion after the election.