The Chancellor is looking at new ways of running government departments after the success of his decision to make the Bank of England independent in 1997, a move that restored trust in the setting of interest rates because it removed political interference.

Mr Brown was known to be critical of the decision to make Sir Nigel Crisp permanent secretary at the Department of Health and chief executive of the NHS.

The NHS plan is revealed in a Radio 4 documentary today by Nick Robinson, the BBC political editor. Sources say that Mr Brown is looking at all departments, particularly the Department of Trade and Industry, to separate policy decisions by politicians from their implementation by Whitehall. In regard to the NHS, the Government would still set the budget and strategic policy but a new independent board would be responsible for management.

Mr Brown will also consider reforms designed to break Labour’s reputation for spin, sleaze and control freakery. He has spoken of the need to reinvigorate the constitutional reform agenda — giving Parliament the power to declare war, completing the reform of the House of Lords and devolving more power to the regions and to local councils.

In the documentary Ed Balls, a Treasury minister and formerly the Chancellor’s chief adviser, suggests that Mr Brown’s style in Europe will be similar to Baroness Thatcher — words that will raise hackles among Blairite ministers. Mr Brown will “say ‘no’ when ‘no’ is the right thing”, Mr Balls says.

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