Iris66, I would second the Homebirth Uk website recommended, I had my second DD at home in March this year, and I had diet controlled GD.
I was under a consultant at the hospital, a diabetologist (sp?) and a specialist midwife, and was put under enormous pressure to deliver at the hospital in the consultant-led unit, however I resisted - even when they insisted that I needed to go onto insulin - I researched it all thoroughly and made my own mind up.
It is up to you no-one can make you do anything, you always have the final say in what you are prepared to do medically, for your own health and that of your baby.
I was told that shoulder dystocia was more likely for a GD mother (this is based on studies of insulin-dependent diabetic pregnancies, not necessarily GD pregnancies), and all that would be different at home is that there would be less people to help at the press of a button.
Ask your consultant what research and studies their policies are based upon, get a copy of the hospital's protocols for dealing with gd labour/birth/babies, and stick with your midwife!
I wonder how many babies your midwife has delivered in comparison with how many the consultant has delivered?
You could also ask your midwife if she has ever had to deal with a shoulder dystocia, how she would deal with it should it happen etc.
I found that knowing all the facts, and statistics helped me make a balanced decision, but I also negotiated that I would only go into hospital to labour and give birth if I could go into the midwife-led unit, with my midwife...
(This was by me being extremely stubborn, well-researched, and asking for actual scientific studies/data to back up what all the professionals were telling me - I didn't make myself popular, but I firmly believed that it would be better for me and my baby to be at home, relaxed and with people I trusted).
It all worked out well for me in that I had a two and a half hour labour in total, and my second stage was over with in four minutes , which certainly beat the four hours of pushing and forceps with DD1
But only you can decide what is best for you and your baby, sorry about the long rambling post, but I feel very strongly about this, and only hope this helps a little .
Good luck whatever you decide