Brown to announce Cabinet

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Several senior Cabinet members are expected to be culled as the new Prime Minister carries out the most radical shake-up since Labour came to power.

Among the posts Mr Brown needs to fill is Health Secretary, after Patricia Hewitt announced her resignation for "personal reasons".

Foreign Secretary Margaret Beckett and Justice Secretary Lord Falconer are tipped to follow her out of the door, while John Reid has already stood down as Home Secretary.

Westminster observers are speculating that the "big beasts" in the new administration will be Trade Secretary Alistair Darling, Commons leader Jack Straw - Mr Brown's leadership campaign manager - and Environment Secretary David Miliband.

Many believe Mr Darling will be installed at the Treasury, and Mr Straw could take over at the Ministry of Justice. At the age of 41, Mr Miliband could become the youngest foreign secretary since David Owen in 1977.

A host of young Brownites such as Ed Balls, Yvette Cooper, Douglas Alexander and Andy Burnham are also predicted to benefit from the reshuffle.

Mr Brown is due to announce significant changes to the machinery of Government, with the Department for Education and Skills reportedly splitting into responsibilities for young people and schools, and higher education and skills respectively. The Prime Minister has also pledged to create a "government of all the talents", with hints that senior cross-party figures could be given ministerial posts.

It has been widely predicted that Mr Brown will abolish the Department of Trade and Industry. But the director general of the Confederation of British Industry, Richard Lambert, urged the new Prime Minister to ensure that there was still a strong figure at the Cabinet table speaking up for business and a competitive economy.

Mr Lambert told BBC Radio 4's Today programme: "We think it is very important that there should be a strong voice at the Cabinet table making the case for a competitive economy, so we would be very disappointed indeed if at the end of the day there isn't a department for business with a strong person in charge."