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Cabinet begins work as Hain goes Cabinet begins work without Hain
(about 2 hours later)
Gordon Brown's new cabinet team will begin work following a reshuffle forced by the resignation of Peter Hain. Gordon Brown's new cabinet team meets for the first time later following a reshuffle forced by the resignation of Peter Hain.
Mr Hain quit as work and pensions secretary, as the Met police prepare to investigate donations to his Labour deputy leadership campaign. Mr Hain quit as work and pensions secretary, as the police prepare to investigate donations to his Labour deputy leadership campaign.
Labour MP Geoffrey Robinson, who was forced to resign as paymaster general in 1998, said the Electoral Commission should have more powers over funding.
Mr Hain is the first cabinet member to resign under Mr Brown's premiership.Mr Hain is the first cabinet member to resign under Mr Brown's premiership.
He has been replaced by 37-year-old James Purnell. Mr Hain's other post - Welsh secretary - goes to Paul Murphy.
Police inquiryPolice inquiry
The Neath MP, who also quit his other role as Welsh secretary, said he felt he had no choice but to resign to "clear his name". The Neath MP said he felt he had no choice but to resign to "clear his name".
I think we need is to reinforce the public confidence and the only way we do that is to have a proactive, clearly established commission Geoffrey Robinson MP
Mr Hain has returned to his constituency and faces a police inquiry into donations totalling £103,000 which he failed to declare to officials in time.Mr Hain has returned to his constituency and faces a police inquiry into donations totalling £103,000 which he failed to declare to officials in time.
CABINET RESHUFFLE Work and Pensions Secretary: James PurnellCulture Secretary: Andy BurnhamChief Secretary to the Treasury: Yvette CooperHousing Minister: Caroline FlintSecretary of State for Wales: Paul Murphy Profile: James PurnellProfile: Andy Burnham
He declared 17 of the donations more than four months after the contest ended, placing him in potential breach of electoral law.He declared 17 of the donations more than four months after the contest ended, placing him in potential breach of electoral law.
The Electoral Commission passed Mr Hain's late declaration of donations to police after a "thorough review" of the case.The Electoral Commission passed Mr Hain's late declaration of donations to police after a "thorough review" of the case.
Labour MP Geoffrey Robinson, who was forced to resign as paymaster general in 1998, said the Electoral Commission should have more powers over funding.
Mr Robinson told BBC One's Question Time: "I don't condone or try to excuse bad administration.Mr Robinson told BBC One's Question Time: "I don't condone or try to excuse bad administration.
"But what I think we need is to reinforce the public confidence and the only way we do that is to have a proactive, clearly established commission."But what I think we need is to reinforce the public confidence and the only way we do that is to have a proactive, clearly established commission.
"And we should give it the teeth to do it and it shouldn't be a question of the police coming in. The commission should ensure it for us." "We should give it the teeth to do it and it shouldn't be a question of the police coming in. The commission should ensure it for us."
'Honourable thing''Honourable thing'
In the reshuffle, James Purnell becomes work and pensions secretary and is replaced as culture secretary by Andy Burnham. Paul Murphy is Welsh secretary. I think we need is to reinforce the public confidence and the only way we do that is to have a proactive, clearly established commission Geoffrey Robinson MP
Yvette Cooper replaces Mr Burnham as chief secretary to the treasury, and Caroline Flint becomes housing minister. In the reshuffle, James Purnell is replaced as culture secretary by Andy Burnham. Yvette Cooper replaces Mr Burnham as chief secretary to the treasury, and Caroline Flint becomes housing minister.
The prime minister said Mr Hain's resignation was the "right and honourable thing to do", while Conservative leader David Cameron said it was the "right decision".The prime minister said Mr Hain's resignation was the "right and honourable thing to do", while Conservative leader David Cameron said it was the "right decision".
BBC News political correspondent Rajini Vaidyanathan says that by promoting younger ministers such Mr Purnell and Mr Burnham to senior cabinet posts, the prime minister will be hoping he can get on with the business of running government.BBC News political correspondent Rajini Vaidyanathan says that by promoting younger ministers such Mr Purnell and Mr Burnham to senior cabinet posts, the prime minister will be hoping he can get on with the business of running government.
But with the prospect of a long police inquiry the issue of party funding could dominate the headlines for many weeks to come, she added.But with the prospect of a long police inquiry the issue of party funding could dominate the headlines for many weeks to come, she added.