Friday's papers analyse the ramifications of Alan Milburn's return to the government as Labour's election and policy supremo.

The former health secretary will be based in the Cabinet Office but will also have an office in Number 10.

An ally of Milburn tells the FT that to be a success he needs to be more diplomatic.

"What Alan has to try and do is be a unifying force," says the source. "People will portray him as a splitter. The challenge for Alan is to bring forward plans which the party likes and which also appeal to the general public."

Today's Guardian describes Milburn as "all powerful" but insists he will have to act quickly and creatively if he is to make a success of his new role.

Cabinet ministers made a determined effort to portray a united front on the steps of Downing Street on Thursday.

One said: "All this talk of people being at daggers drawn has been hugely overplayed... you wouldn't recognise the scene in cabinet from some of the accounts of what was expected."

Downing Street has come under fire for allowing Milburn to draw his Cabinet salary of £133,347 from the taxpayer, rather than from the Labour Party.

Andrew Mackay, a former Tory minister, said: "There are a number of precedents where someone who has held that position and has been doing party work has been paid for by the party and not the taxpayer."

Meanwhile, friends of Gordon Brown have let it be known that "the chancellor intends to concentrate on being chancellor".

But the Independent says that Brown's inner circle is "apoplectic" at the changes.