It seems that Alan Milburn, now rejoicing in the feudal title of Chancellor of the Duchy of Lancaster (very New Labour), will have responsibility in No.10 for the policy directorate and the strategy unit.
These staff obtain such influence as they have in Whitehall from having direct access to the Prime Minister, and being thought to be working directly for him. If they are now working for another Minister, however capable and influential, the influence of these key No.10 staff can only be diminished. Futhermore, they will have divided loyalties, and an increased workload serving two, rather than one, masters.
Good luck to them, I say.