Today's FT reports that ministers are set to water down a central recommendation to be made in this summer's Gershon review.

The government has signalled that it may not be able to achieve plans to dramatically cut the number of organisations involved in local government procurement.

Nick Raynsford said he believed it would take "a miracle" to reduce the number of bodies to around half a dozen.

Meanwhile Sir Michael Lyons, who headed the review into civil service relocation, says cities which have developed a "substantial strategy" are likely to win the new jobs.