A Whitehall reshuffle could see the DCLG carved in two as the new prime minister makes his mark on the Government. Speculation increased last week after the chancellor Gordon Brown held a meeting with cabinet secretary, Sir Gus O'Donnell, and Whitehall department chiefs to discuss plans for when he takes over as prime minister on June 27. According to central government insiders, housing and planning could be hived off into a separate department, possibly headed by current housing minister, Yvette Cooper. Local government, in turn, would be part of a Department of Regional and Local Government, including responsibility for Wales and Scotland. Mr Brown is likely to want the department to focus on the economic regional agenda, as well as reduced functions of the Welsh, Scottish and Northern Ireland offices.
