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Darling 'to remain as chancellor' Johnson is the new home secretary
(20 minutes later)
Alistair Darling is to stay chancellor and Jack Straw will remain justice secretary as Gordon Brown begins a reshuffle, sources have told the BBC. Health Secretary Alan Johnson is to replace Jacqui Smith as home secretary, as Prime Minister Gordon Brown carries out a make-or-break reshuffle.
Mr Brown's ally Ed Balls had been tipped for the job but Mr Darling is thought to have insisted on staying. Alistair Darling will stay in his job as chancellor and Jack Straw will stay justice secretary.
Mr Brown is fighting for his political life after Work and Pensions Secretary James Purnell resigned with a call for the PM to go "for Labour's sake".Mr Brown is fighting for his political life after Work and Pensions Secretary James Purnell resigned with a call for the PM to go "for Labour's sake".
It comes as Labour braces itself for bad results in English local elections.It comes as Labour braces itself for bad results in English local elections.
Mr Brown is in Downing Street working on a reshuffle which is expected to see widespread changes in key jobs within the next few hours.Mr Brown is in Downing Street working on a reshuffle which is expected to see widespread changes in key jobs within the next few hours.
Gordon Brown is going to remain steady and resolute, dealing with the collapse of confidence in Parliament and the difficult economic situation, and we will support him loyally Harriet Harman, Labour deputy leader LIVE: Brown fights for his futureGordon Brown is going to remain steady and resolute, dealing with the collapse of confidence in Parliament and the difficult economic situation, and we will support him loyally Harriet Harman, Labour deputy leader LIVE: Brown fights for his future
BBC Political Editor Nick Robinson said he understood that Mr Darling had turned down a move to the home office and Mr Purnell had been "sounded out" about the job of education secretary, which would have paved the way for Ed Balls to become chancellor, but that was not now going to happen. BBC Political Editor Nick Robinson said he understood that Mr Darling had turned down a move to the home office and Mr Purnell had been "sounded out" about the job of education secretary, which would have paved the way for Mr Brown's ally Ed Balls to become chancellor, but that was not now going to happen.
Cabinet ministers have been rallying round Mr Brown following Mr Purnell's surprise departure, with none so far indicating they are ready to follow his lead.Cabinet ministers have been rallying round Mr Brown following Mr Purnell's surprise departure, with none so far indicating they are ready to follow his lead.
Defence Secretary John Hutton, another leading Blairite, said Mr Purnell had made "the wrong decision" and Mr Brown was "the right man to lead our party and our country".Defence Secretary John Hutton, another leading Blairite, said Mr Purnell had made "the wrong decision" and Mr Brown was "the right man to lead our party and our country".
Deputy Labour leader Harriet Harman told GMTV: "If James Purnell wants to make his decision to leave the government, then that's a matter for him, but he's not entitled to say that the prime minister has to go too, and he's not going to."Deputy Labour leader Harriet Harman told GMTV: "If James Purnell wants to make his decision to leave the government, then that's a matter for him, but he's not entitled to say that the prime minister has to go too, and he's not going to."
She added: "Gordon Brown is going to remain steady and resolute, dealing with the collapse of confidence in Parliament and the difficult economic situation, and we will support him loyally."She added: "Gordon Brown is going to remain steady and resolute, dealing with the collapse of confidence in Parliament and the difficult economic situation, and we will support him loyally."
International Development Secretary Douglas Alexander told BBC Radio 4's Today programme he expected more people to be "taking to the airwaves saying Gordon Brown has got to resign".International Development Secretary Douglas Alexander told BBC Radio 4's Today programme he expected more people to be "taking to the airwaves saying Gordon Brown has got to resign".
But he said he disagreed with Mr Purnell and said Mr Brown staying on as prime minister was the "right thing for the country".But he said he disagreed with Mr Purnell and said Mr Brown staying on as prime minister was the "right thing for the country".
Sugar supportSugar support
He said Mr Purnell's conclusion about Labour was not shared by other colleagues in the cabinet and said it would be disastrous for the Labour Party to "turn inward" following the week's events.
Business tycoon Sir Alan Sugar, who has been tipped for a government job, also backed Mr Brown saying: "We are in an emergency situation as far as the economic conditions go... I can not think of a better person to be in place."Business tycoon Sir Alan Sugar, who has been tipped for a government job, also backed Mr Brown saying: "We are in an emergency situation as far as the economic conditions go... I can not think of a better person to be in place."
But Conservative leader David Cameron repeated his call for a general election, telling BBC News the government had "lost the right to govern". But Conservative leader David Cameron and Lib Dem leader Nick Clegg repeated their calls for a general election.
"We have a government in complete chaos. We really do deserve better than this," he added. Mr Cameron told BBC News the government had "lost the right to govern," adding: "We have a government in complete chaos. We really do deserve better than this."
Mr Clegg said Mr Brown's reshuffle was "irrelevant" because the Labour government was "finished" and had "run out of road".
"The Labour Party has no right, at a time when people are crying out for help, to hold the country to ransom with its own infighting," he added.
Mr Purnell's resignation came within minutes of polls closing in European and English local elections.Mr Purnell's resignation came within minutes of polls closing in European and English local elections.
In a letter published in several newspapers, the work and pensions secretary said Mr Brown's continued leadership made a Conservative victory at the next general election "more, not less likely".In a letter published in several newspapers, the work and pensions secretary said Mr Brown's continued leadership made a Conservative victory at the next general election "more, not less likely".
He said he was not seeking the leadership but wrote: "I now believe your continued leadership makes a Conservative victory more, not less likely. That would be disastrous for our country."He said he was not seeking the leadership but wrote: "I now believe your continued leadership makes a Conservative victory more, not less likely. That would be disastrous for our country."
It comes after the resignation of Home Secretary Jacqui Smith, Communities Secretary Hazel Blears and two junior ministers - but Mr Purnell is the first to explicitly criticise the prime minister.It comes after the resignation of Home Secretary Jacqui Smith, Communities Secretary Hazel Blears and two junior ministers - but Mr Purnell is the first to explicitly criticise the prime minister.
Labour is, meanwhile, bracing itself for bad results in English local elections, which will begin to come through as the day unfolds.Labour is, meanwhile, bracing itself for bad results in English local elections, which will begin to come through as the day unfolds.
The results of the European election, which was also held on Thursday, will start to be published from 2100 BST on Sunday.The results of the European election, which was also held on Thursday, will start to be published from 2100 BST on Sunday.