The government is set to reduce the role of its e-envoy Andrew Pinder, it is reported today.

His office is to be reduced in size to become a "small unit" as its budget is reduced by at least 25 per cent.

One source says Pinder will become a "galvanising figure" rather than a policy formulator.

It is said his 200 employees are to be spread throughout Whitehall leaving "a very basic staff" under his command.