Reid wins cabinet battle to become security tsar

John Reid has won a cabinet battle to become Britain's "security supremo" under a plan for the Home Office to co-ordinate the fight against terrorism.

A plan to split the Home Office into two separate security and justice departments is expected to be given the go-ahead by the Cabinet today. The changes will be rushed through to take effect on 8 May, the day devolved government is due to be restored in Northern Ireland.

The scheduling of both events on 8 May provides the clearest signal to date of the departure timetable in Tony Blair's mind. He is likely to announce his resignation as Prime Minister the following day, enabling him to cite peace in Northern Ireland and a new anti-terrorism strategy as part of his political legacy. His successor, widely expected to be Gordon Brown, would then be installed at the end of June or the first few days of July.

With Mr Blair's strong backing, Mr Reid has fought off strong objections from Margaret Beckett, the Foreign Secretary, and intelligence chiefs for the Foreign Office to retain full control of MI6 and GCHQ.

Under the biggest changes to the Home Office in its 225-year history, the Home Secretary will take charge of counter-terrorism. Crucially, he will be responsible for all security threats to the UK, and the "contest" strategy against al-Qa'ida, now under the Cabinet Office.

A new Office of Security and Counter-Terrorism will report to the Home Secretary, who will chair a new ministerial committee on security and terrorism if the Prime Minister does not attend. The Home Secretary will chair a weekly meeting of all the security and intelligence agencies, the police and relevant Whitehall departments.

The Home Office will also take charge of "winning the hearts and minds" of Muslims in Britain, currently shared with the Foreign Office and the Department of Communities and Local Government (DCLG). Some 200 staff will transfer to the Home Office from the Foreign Office, Cabinet Office, now responsible for co-ordinating anti-terrorism work, and the DCLG.

The Foreign Office will retain responsibility for security threats to British people abroad. In a concession to Mrs Beckett and Ruth Kelly, the Communities Secretary, Mr Blair will say that the holders of their posts will also play a vital role in delivering the new strategy. Officially, MI6 and GCHQ will continue to report to the Foreign Office and there will be no formal change to the Foreign Secretary's role.

The Home Office will also keep control of police, antisocial behaviour, crime and and immigration, while prisons, probation and the criminal justice system will transfer to a new Ministry of Justice. It will be added to the Department of Constitutional Affairs, whose staffing levels will treble. The Home Secretary will retain a vital role on sentencing and criminal law.

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