Confidential letter from Blunkett to Blair concerning three points. Firstly, the need to fill three Permanent Secretary vacancies in the Civil Service and the need for the 'radical modernisation of the management and delivery of services'; secondly concerning the machinery of government and Blunkett's opinion that it would be an error to reconfigure departments rather than change the way they operate. Finally, Blunkett writes about the recent budget and the risk that while it will overcome initial poverty it won't resolve disadvantage, but more could be achieved through the government's welfare to work agenda.