Alan Johnson's appointment as health secretary and Peter Hain's shift to work and pensions signal a more union-friendly approach to the management of public services and possible disappointment for companies looking to offer healthcare and employment services.

Gordon Brown's immediate priority is to restore stability and financial stability to the National Health Service, which is grappling with Tony Blair's market-based reforms. The underlying objective is to restore public trust in the health service and recover Labour's poll lead over the Conservatives on health.