Brown leadership back in question as Kelly quits 'for family reasons'

GORDON Brown's political fightback was blown off course yesterday by the shock revelation that Ruth Kelly, the Transport Secretary, is to quit the government.

Her imminent departure – announced about 3am after Downing Street broke protocol and responded to rumours about Ms Kelly's position – meant the Prime Minister was unable to build on a well-received party conference speech as he toured TV and radio studios.

It also reignited speculation about a plot to replace Mr Brown, with Ms Kelly known to be close to David Miliband, the Foreign Secretary and main leadership contender. Ms Kelly will formally leave her post at the next Cabinet reshuffle, now expected within a fortnight.

The mother of four said she had told the Prime Minister in May of her wish to stand down to spend more time with her family. However, confirmation of her departure was being interpreted as No10 attempting to flush out any signs of dissent at the earliest opportunity.

Tom Harris, the transport minister and Glasgow South MP, told The Scotsman he only discovered about his boss's intention to stand down at the next reshuffle at breakfast yesterday. He said: "I'm really disappointed she is going. She is really respected and liked by the industry. I would much prefer if she wasn't going, but I'm a father of two young children myself and I totally understand all the pressure she is under."

On his blog, Mr Harris admitted there would be "much frenzied speculation" about her motives for leaving the government, but said he believed it was for family reasons.

He wrote: "The media would do well to avoid reading between the lines and to accept that, on this occasion, a successful politician has taken a principled and courageous decision to put her family, and her children, first."

However, another minister was reported to have viewed the leaking of Ms Kelly's intentions as a "declaration of war" by Downing Street, while another member of the government said: "Downing Street has pushed out the timing of the announcement for reasons of their own. I have given up trying to understand why they do things like this. It is not helpful."

In her final speech to the conference, Ms Kelly described Mr Brown as a "towering figure" and said the decision to quit had not been taken lightly.

With the Prime Minister watching from the conference platform, Ms Kelly, who entered parliament in 1997, told delegates: "I ask for your understanding when I say that I now owe it to my children and family to put them first. If I do not, then I know that this is something I will come to regret deeply."

But she failed to say that Mr Brown was the right man to lead the party, concluding with the coded remark that "we can and must do even better".

Mr Brown, who came under repeated questioning about Ms Kelly's decision to stand down, said: "There are no political issues between Ruth and me."

In giving the closing address to conference, Harriet Harman, Labour's deputy leader, said the event had confounded doubters who had expected "division and disunity". She said it was clear that Labour activists expected the party "to be loyal – and that includes our Labour MPs".

Forced reshuffle offers range of options

GORDON Brown has several options to replace Ruth Kelly in a reshuffle – immigration minister Liam Byrne, Europe minister Jim Murphy, housing minister Caroline Flint, right, and employment relations minister Pat McFadden.

An alternative would be to move an existing Cabinet minister, such as Northern Ireland Secretary Shaun Woodward or even the Defence and Scottish Secretary Des Browne.

The biggest decision for Mr Brown will be what to do with the three great offices of state – those of Chancellor, Foreign Secretary and Home Secretary. Moving or sacking Alistair Darling from the Treasury would send shock-waves throughout the financial community, and also lose Mr Brown a long-standing ally.

David Miliband has made it known that he wishes to continue at the Foreign Office while Jacqui Smith, the Home Secretary, was promoted to her job only 16 months ago when Mr Brown became leader, and demotion would amount to an admission that he had got it wrong.

PM heads for New York summit to press finance message

GORDON Brown was due in New York last night to attend a United Nations summit on tackling global poverty and to fulfil his pledge to tighten up world banking rules to prevent another financial crisis.

The Prime Minister wants more transparency about banks' debts, tougher rules to prevent investors betting on the future of banks and moves to tackle the bonus culture in financial institutions. which he believes have behaved irresponsibly.

In his Labour conference speech, Mr Brown vowed to do "all it takes" to stabilise markets and "rebuild the world financial system" in coming months. He will address the UN General Assembly tomorrow on progress made towards its eight "millennium development goals".

Set in 2000 and endorsed by 190 countries, these aim to eradicate extreme poverty and hunger, achieve universal primary education, reduce child and maternal mortality, combat diseases such as malaria and HIV/Aids and ensure environmental stability by 2015.

Mr Brown will return to the UK at the weekend with all eyes on the Conservatives, who begin their annual conference on Sunday in Birmingham.

Labour MPs will watch anxiously to see if the Tory leader, David Cameron, is able to emulate Mr Brown's well-received conference speech, and if the Tories can retain their 20-point opinion poll lead.

Parliament returns on 6 October, with a Queen's Speech containing the government's legislative priorities and the Pre-Budget Report on the horizon.