PM denies 'dithering' over Hain

Mr Hain quit as Work and Pensions Secretary and Wales Secretary on Thursday after police launched an investigation into his failure to declare donations, but the Conservatives said his belated removal from the Cabinet showed the PM was indecisive.

Mr Brown insisted he did "the right thing" by waiting for watchdogs at the Electoral Commission to complete their investigation into donations to Mr Hain's campaign for Labour deputy leader.

As the Metropolitan Police Economic and Specialist Crimes Command began their inquiry into the £103,000 donations, Mr Hain won the public support of the two men who succeeded him.

New Work and Pensions Secretary James Purnell said he believed Mr Hain would clear his name. And Wales Secretary Paul Murphy said: "I hope that it is not the end of the political career of Peter Hain. I think he has still got an awful lot to offer."

Speaking to reporters in the Swiss mountain resort of Davos, where he is attending the World Economic Forum, Mr Brown dismissed suggestions that he should have moved more quickly by sacking Mr Hain when concerns over the handling of his donations emerged earlier this month.

"I always said - and I think this is the right thing to do - that we would wait until the Electoral Commission itself reported," he said. "They had the facts, they were looking at them, they have made their judgment and now we get on with business."

And Mr Brown insisted his administration had not been knocked off course by yesterday's forced reshuffle, pointing out that Mr Purnell would be delivering a statement on employment policy to Parliament as early as Monday, while he would himself be hosting European leaders Nicolas Sarkozy, Angela Merkel and Romano Prodi for talks on the global economy in London on Tuesday.

He said: "The most important thing people should know is we are getting on with the business of government."

And he added: "Mr Hain did the right thing by resigning and we get on with the job. The job of government is to get on with the business of making sure that the economy is more stable, making sure that jobs and prosperity are guaranteed, making sure at the same time we continue the momentum of public sector reform agenda."