Brown could 'walk away', hints Balls

The Children's Secretary said Mr Brown would do whatever was in the national interest. "He will always do what is right for the country and the Government," said Mr Balls in a Times interview.

"What I will be saying to him is the right thing for him to do is to take us into the election." The Prime Minister fanned speculation about his future in an interview at the weekend. "To be honest, you could walk away from all of this tomorrow," he said.

"I'm not interested in what accompanies being in power. I wouldn't worry if I never returned to all those places - Downing Street, Chequers ... and it would probably be good for my children."

A day later Mr Brown tried to correct the impression that he was thinking of quitting with another interview, saying: "It is because of my purpose in politics that I am determined to lead Labour to the next general election."

His musings have been pored over by Labour MPs, some of whom say there will be fresh moves to oust Mr Brown in the autumn unless Labour recovers in the polls. Some suspect that the hints that he would resign are designed to confuse his critics.

Mr Brown today expressed regret that he and other leaders had tolerated an expenses system that was "ripe and open to abuse".