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Gordon Brown's Cabinet reshuffle was plunging into disarray this afternoon as ministers jostled for position.
Despite crucial elections two days away, the Government's unity started breaking down as ministers campaigned for their own futures ahead of what is likely to be a sweeping post-defeat re-organisation.
Sources close to Home Secretary Jacqui Smith pre-empted Mr Brown's hiring and firings by confirming the disclosure in last night's Standard that she would be stepping down.
The sources revealed that Ms Smith told the Prime Minister of her wish to go two months ago.
An explosive backlash erupted against the prospect of Ed Balls replacing Alistair Darling as Chancellor who is under fire in the expenses scandal. Senior Blairites claimed that the promotion would be “divisive” and make the Cabinet “unbalanced”.
Foreign Secretary David Miliband appeared to try to dig himself in against the threat of being replaced by Lord Mandelson by declaring that he wanted four more years at the Foreign Office.
Their actions threatened to derail the last days of Labour's campaign to avoid a rout in the local council and European elections.
With the party braced to lose its final four shire counties and see the possible election of BNP candidates as MEPs, the Prime Minister is counting on a bold and smooth reshuffle, probably on Monday, to relaunch his fortunes.
Ms Smith is the biggest casualty yet of the Commons expenses row. In March she was humiliated by disclosures about husband Richard Timney's claims for adult films on her MPs' expenses.
She also came under fire for putting down her sister's London home as main residence, allowing her to claim Commons expenses on her family home in Redditch.
In another blow to Mr Brown, Cabinet Office Minister Tom Watson — a key figure in the 10 Downing Street war room with a desk a yard from the Prime Minister's — announced that he too was quitting the Government in the reshuffle.
He was caught up in the “smear” row involving aide Damian McBride and was said to feel badly bruised by the episode.
Mr Watson is a trusted Brownite who played a key role in the “September coup” of 2006, when he quit as a junior defence minister to help oust Tony Blair. He was dragged into the expenses scandal when it was claimed that he “lavished” tens of thousands of pounds on a London flat.
The voluntary resignation of Ms Smith gives Mr Brown more room to make changes.
The most bitter fight was over the post of Chancellor, with Mr Darling looking doomed. MPs are convinced that Mr Brown aims to replace him with Children's Secretary Mr Balls.
Mr Brown has for several weeks been rumoured to want him to take over the Treasury, seeing him as a more strategic and combative Chancellor. One possibility is that it would be counterbalanced with promotion for Lord Mandelson to the Foreign Office.
Mr Balls was highly popular with London business when he was City Minister at the Treasury.
But one former minister said: “Gordon obviously rates Ed Balls but he must be careful that he does not leave the Cabinet unbalanced. That could be the effect if Ed ran the Treasury in the same way that he behaved when he was there as Gordon's special adviser.”
Another MP said: “He would be a very unpopular choice. It would look like the Brown camp getting narrower and more powerful at the same time.”
A senior former minister said the choice of Mr Balls would “indicate a preference from the Prime Minister for a tribalism and his style of doing things rather than listening to the views of the wider party”, adding: “He is part of a group around Brown who have been intolerant of others, who have only been too ready to take divisive action to pursue their objectives. I don't see him as a successful Chancellor who would bring people together.”
Mr Miliband made clear he did not want to leave the Foreign Office. “I'm focusing on my job. I have got four more years until I beat Ernie Bevin as the longest serving Foreign Secretary.”
Among those who could be the new Home Secretary are Mr Darling — it would be a demotion but would give him an honourable exit from the Treasury — Health Secretary Alan Johnson and even Mr Miliband if Mr Brown makes Lord Mandelson the new Foreign Secretary.
Reader views (41)
My goodness! Look at you! Blair deceived the world with his crony Bush and attacked Iraq! Few weeks ago, Milliband tried to "teach" the Sri Lankan President, and tried to save Prabakaran. These British parliamentarians can't even run their own country!
- Ariya, Colombo, Sri Lanka
Out dammed spot! Out I say!
Who cares, get out or we march. The people have had enough.
Did I hear the name Mandelson in all of this mess too?
- Wayne Barnes, London
Ben Stiller? I was thinking more Russell Brand ...
- Marianne, SW France/London
This whole state of affairs reminds one of the final days of the East German government in 1989. The wall finally came down, the despots ran for their lives for any haven that would have them before the population tore them to pieces. They all disappeared into oblivion and hardly anyone remembers them. Won't be long before history repeats itself
- Neil, London, UK
Let's replace Mr Darling with a Chancellor who has the morality and fairness to honour those who have made National Insurance contributions and now find themselves dudded by Government policy. There is a 50 billion pound surplus of contributions in the National Insurance Fund.
This was originally set up not only to fund the NHS and social security but to pay retirement pensions, and for no other purposes. The fact that there is such a high surplus is mainly due to two reasons (1) the state pension has not kept pace with the cost of living and (2) UK state pensioners in countries such as Australia and Canada do not have their pensions uprated each 6 April unlike those in the countries such as the USA, Israel and the Philippines. Come on honest politicians, show your commitment to decency and fix this. These people have contributed to a fund, unlike some "Crown servants". Wlile we're at it let's standardise the retirement age for all.
- Richard Lane, Kariong, NSW, Australia
Bad hair day? We should be worrying that Mandelson wants to leave Business when he has been the best Business Secretary ever. Millband needs a really testing job if he ever wants to be considered as future PM material. The Home Office would do nicely. Mandelson would be more innovative at the FO. Alan Johnson could take over as PM and let Benn be Chancellor or Foreign Secretary.
- Dhan Raj, basildon
I think Brown's cabinet and other chaos has been from the beginning. He should never have gotten in un-elected.
- Jacqueline, Hampstead, London
Why are we still not going to the streets to revolt against this I think "Great Britain" has seen all the parties and we now need to create a new one that speaks of the values and people and is not loaded with self gain and monetry gains long gone under these governments is the kings and their castles. lets move on and stop creating more elitism in this country and stop the major corruption we have had to endure under this and the previous conservative government. Enough is Enough.
- Jenny, Islington London Uk
It's no more than he deserves.
- Dee Jay, Fleet Hampshire
Not only is Nuews Liar-bore coming unzipped, but it looks like Pa Broone is probably heading for the Priory Hospitals with 'Executive Stress'.
Watch out for the infighting between the Tribe of Blair and the Tribe of Broone. "Oh what a mess, oh thats a fine mess you have gotten me into" says Broone.
Its better than watching 'Reality Big Brother' on TV.
- Uncle Vanya, Chelmsford UK
With all these problems going on,I think we are forgetting some of the other problems caused by the outrageous banking system we are still lumbered with,are you one of the many millions being told by your bank to go to the Citizens Advice Bureau,and they then sort you out a way of paying the bank back,not only the debt you owe but the scandalous interest acrued by the bank,not you.
Were you getting Credit Card charges of £80.00 per month and out of that £5.00 came off the Bill.
- David., Chertsey.UK.
Very amusing. So we are rid of the useless Ms Smith. How about taking Blears, Jowell and the rest with her ?
So Milliband wants another four years as foriegn secretary. Then he will have to change parties !
Balls as chancellor - good experience as "schools secretary". He really needs to change his name otherwise he will be an international joke.
The whole rotten bunch is falling apart. Let us hope Brown remains to make certain that we win the next election. Some are hoping for a sympathy vote with the uneducated postman at the helm.
God help us if they hang on until 2010.
- Michael, Kensington, UK
So we had the Darling/Brown duo, now we'll get the Brown/Balls combo - its all beginning to look like a Blackadder sketch... come on everybody - sign the petition!!!!!!
- R H, london
That photo of Brown reminds me of Ben Stiller doing his "Blue Steel" pose in Zoolander. Is Gordon thinking of trying male modelling after he gets turfed out?
- Kevin T, Beckenham, Kent
Chaos,-utter chaos,rats leaving the sinking ship,this is what happens when Governments cling to power too long,- despite not having any policies or plans to rescue the economy which was caused by their own stupidity in the first place,-goodbye ZanuLabour,you have just reached your expiry date.
- Jacob, Canterbury Kent
Hope it doesn't all get so chaotic he forgets to fire Hazel Blears.
- Jilly, London
What a complete shambles this government is. Only yesterday I heard Gordon Brown say that he feared for the country if an election was held and brought in an alternative to New Labour. Yet he cannot hold his own cabinet in check. Surely he must see that we need a General Election and fast. Somehow our PM must be jerked out of his imaginary world and made to see reality. The country is suffering and we need a government of sanity and hard head4ed pragmatism. Indulging Brown's fantasies is precisely what we do not need. An election is precisely what we do need.
- James Elliott, Eastbourne UK
Ain't it odd, too, that nobody's actually yet 'volunteered' for the No1 Job, to run this shower!
Seriously, though, McLabour surely didn't really expect many votes of support in this weeks' EU Elections, after cowardly renaging on 'their promised referendum' to the electorate to determine further European integration.
- Dave, Cumbria
The simple fact that Brown still thinks he has work to do shows very clearly that he has long since lost touch with what those he is supposed to serve are thinking. The very idea that the man who got us into this is the man to get us out of it is preposterous. He should be shown the door.
- Leslie Bush, Bedford, UK
What reshuffle. Dealer Brown is holding a pack of jokers!
- K Lee, Cheshunt, UK
"Rats & Ships" comes readily to mind.Hopefully this will bring the Government down in the next couple of weeks.Can anyone recall in our history such an infighting mess?
- Harvey N Lawrence, London
Exactly Alex Beveridge who cares about time they understood how serious this.
- Ge, The free people of Kernow
Mr. Brown, please keep David Miliband as the Foreign Secretary or otherwise, you'd have to hire Hilary Clinton!
- Ariya, Colombo, Sri Lanka
A few years ago one of the finest business brains in this Country did something wrong. He admitted his mistakes, apologised for his wrongdoing and repaid any profit. He was sent to prison largely because of his admission.
Let no one give any sympathy or understanding to dishonest and disreputable MPs who it seems will be further rewarded for their sins.
- John, Edgware MIDDLESEX
Looking at the picture of Gordon, a horrific thought crossed my mind. Is this the man with his finger on the British Nuclear trigger?
- Stephen, London
bye bye labour bye bye !
- Ronnie, london
EVERY INITIATIVE SO FAR TO FIGHT THE FINANCIAL MELT DOWN HAS BEEN A DISASTER. FROM THE CUT IN VAT, POINTLESS, FORCING GOOD BANKS TO AMALGAMATE WITH BAD, DITHERING OVER THE EXPENSES SCANDAL, ANNOUNCING FABULOUS INITIATIVES, THAT REMAIN JUST THAT AN ANNOUNCEMENT, LOOK AT THE NUMBER THAT HAVE HAD THEIR HOMES REPOSED , WHEN QUITE SIMPLY THEY COULD HAVE BEEN DEFERED. HELPING SMALL BUISNESSES GET LOANS, LIKE THE REST NEVER HAPPENED.
HERE THEY GO NOW THEVE RUN OUT OF EXCUSES BY CLAIMING ITS ALL IN THE RULES SO NOW THEY ARE TURNING ON ONE ANOTHER. NEVER MIND, THEY WILL GET VAST SIGNING OUT PAYMENTS, PLUS VAST PENSIONS. AND I MEAN VAST. MEANWHILE THE REST OF US, INCLUDING EQUITABLE LIFE MEMBERS, HAVE HAD OUR PENSIONS DIMINISHED.
I ONCE ASKED MY FRTHER , A VETERAN OF THE FIRST WORLD WAR, WHY A MAN WAS STANDING IN THE GUTTER SELLING MATCHES. THAT HE SAID IS A MAN BLINDED BY GAS SERVING HIS COUNTRY. HE SAID NOT ANOTHER WORD, BUT IN THOSE DAYS YOU GOT A BUISNESS VOTE, SO ONE ONE DAY HE VOTED LABOUR, LIBERAL, TORY, ON THE BASIS OF ALWAYS VOTING AGAINST THE THE MAN IN POWER.
- Alan Green, Woodford Green
Blime, looking at his face he needs to share a bed next to Susan Boyle in the Priory! The more chaos the quicker we can get a general election, bring it on!
- Sue, Orpington, Kent
"Mr Balls was highly popular with London business when he was City Minister at the Treasury" - of course he was - he was the author of "macro economicv endogenous growth theory" only problem was he re-wrote the theory, the UK has no industrial base, so unmitigated credit and massive public and private sector debt was Mr Balls chosen method of "internal growth" - now idiot Brown is about to make him chancellor - well lets hope the city likes hime since every unemployed worker, failed business owner and re-possessed home owner have this dunderhead to thank for their predicament
- Edmundb, Banbury, Oxon
Perhaps Mr Milliband should check the history of his own post on the Foreign Office website - "Sir Edward Grey, later Viscount Grey of Fallodon: holds the longest continuous term of any Foreign Secretary - it was from his room that he observed 'the lamps ... going out all over Europe'."
- Peter T, SW London
From rearranging the deck-chairs on the Titanic, to shuffling the Cabinet Ministers around as the Labor Government sinks the economy. Looking forward to the "Balls-Up" Sun headline and the finish! As they say, a clown is most dangerous when it's cornered and run out of bad jokes.
- Jamal Akhbar, Edinburgh
Rearranging seats on the Titanic is more like it. "Four more years as Foreign Secretary"."The P.M. gets 10 out of 10". Ten out of ten for total incompetence more like.They live in another world.
- Mordwinoff, Lisle France.
Yup! Unbalanced is exactly the right word to describe the unwanted impooster squatting at 10 Downing Street. What a bunch of castrated simpletons the rest of the government are to let him do it. Or are they just sadists watchng the poor sod in his death throes letting him take the full rap for all their thieving? Still, who cares. Bye Bye NuLabour, and good riddance.
- .Lezli, London / ENGLAND
Our Parliament includes several memebers who have at the very least failed to grasp the nature of acceptable ethics, and therefore has no credibility.
The custodian of the Nation's economy appears to have difficulty managing his own finances.
The Cabinet seems to be in turmoil, with its members either heading for the door or jockeying for position.
Undaunted, Mr Brown finds the time to express concern for the welfare of a TV show participant, while 2 million of the electorate are concerned about finding a job.
The Prime Minister refuses to call an election because of the "chaos" that would ensue. It would be interesting to hear from the PM a one-word description of the current situation!
- John C, Leatherhead, UK
the whole pathetic politico grandees of every party still fail to understand. we have lost trust and respect in every one, barring a very few decent eggs (Vince cable,Dennis skinner and the m.p. for ludlow to name but three). all their Svengali machinations and reshuffles are
like the senior steward on the titanic rearranging the deckchairs after the last lifeboat has left and the icy Atlantic is lapping around his ankles.
we need a general election now, with new faces signing up to draconian contracts and penalty clauses.
every one of the labour frontline is tainted and in some cases distinctly past any sell by date they may have long since displayed.
CROMWELL'S WORDS ECHO DOWN THE CENTURY;
'YOU HAVE SAT TOO LONG HERE FOR ANY GOOD YOU HAVE BEEN DOING. DEPART, I SAY, AND LET US HAVE DONE WITH YOU. IN THE NAME OF GOD, GO!'
- M.O'Brien, london.uk
Quite frankly, who cares. The sooner this bunch of crooks are gone the better for all of us.
- Alex Beveridge, Cumbernauld Scotland.
As it appears MP's are spending 99% of their time arguing amongst themselves and jockeying for position within the Cabinet, it merely beggars the question SHOULD NOT MP's BE REPRESENTING THE ELECTORATE?
OH! SILLY ME! JOE PUBLIC COUNTS FOR NOTHING. JOE PUBLIC ARE ALL IDIOTS. JOE PUBLIC HAS ALLOWED THESE CREEPS IN THE HOUSE OF CONMEN TO GET AWAY WITH FRAUD OF THE FIRST ORDER.
ONE LAW FOR JOE PUBLIC AND A DIFFERENT LAW FOR MP's.
I AM ABSOLUTELY SICK TO DEATH OF GORMLESS BROWN AND HIS DEVIOUS CRONIES, WHO DO NOT CARE IF JOE PUBLIC DROPS DEAD.
- Reuben Camara, Morecambe/Lancaster
There is no point Labour MPs jostling for position. The British will do that for them at the next general election. And the sooner, the better!
- Graham Rodhouse, Helmond, The Netherlands
It's all going to self implode. Next stop for GB is The Priory.
- Goggs, London
This is like watching a car crash in slow-motion! They're worse than the Tories were in the 90's!! We're going to miss them when they've gone! (OK, maybe the last bit was going too far!).
- Chris, Brighton, England.
The only reshuffle I want to see is a General Election. When the music stops there will no doubt be no chair for Mr. Brown....
- Mark, London
