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Hain quits jobs 'to clear name' Hain quits jobs 'to clear name'
(30 minutes later)
Peter Hain has quit the cabinet after his deputy leader campaign donations were referred to the Met Police.Peter Hain has quit the cabinet after his deputy leader campaign donations were referred to the Met Police.
Mr Hain, work and pensions secretary and Wales secretary, said he had stood down so he could "clear my name".Mr Hain, work and pensions secretary and Wales secretary, said he had stood down so he could "clear my name".
He quit within minutes of the Electoral Commission saying that it had decided to refer the late declaration of £103,000 of donations to the police.He quit within minutes of the Electoral Commission saying that it had decided to refer the late declaration of £103,000 of donations to the police.
In a statement to reporters he said he regretted what had happened and felt he had "no alternative" but to resign.In a statement to reporters he said he regretted what had happened and felt he had "no alternative" but to resign.
Speaking outside the Department for Work and Pensions, Mr Hain said: "I severely and seriously regret the mistake in declaring the donations late."Speaking outside the Department for Work and Pensions, Mr Hain said: "I severely and seriously regret the mistake in declaring the donations late."
Mr Hain earlier wrote to Prime Minister Gordon Brown: "I made a mistake but it was an innocent mistake." Mr Hain, who has said suggestions that he tried to hide anything are "absurd", earlier wrote to Prime Minister Gordon Brown: "I made a mistake but it was an innocent mistake."
He has blamed poor administration and has said the suggestion he tried to hide anything was "absurd". 'Right decision'
In his reply, Mr Brown wrote: "I recognise that, given the circumstances and your desire to clear your name, this is the right and honourable thing to do."
He praised Mr Hain's contribution to the government, adding: " I know that you will continue to make a contribution to public life in the future".
I personally regard him as an excellent colleague and a good friend Harriet HarmanLabour's deputy leader Q&A: Hain's donationsAnalysis: Why Hain quitI personally regard him as an excellent colleague and a good friend Harriet HarmanLabour's deputy leader Q&A: Hain's donationsAnalysis: Why Hain quit
It is the first ministerial resignation of Mr Brown's premiership.It is the first ministerial resignation of Mr Brown's premiership.
The Electoral Commission said it would now be up to the Metropolitan Police to decide whether to investigate the donations. Conservative leader David Cameron said: "It's the right decision, but it shouldn't have happened in this way."
Shadow home secretary David Davis said Mr Hain had made the right decision. "I said some time ago the prime minister should have said to Peter Hain you've got to give a convincing explanation of your situation or you can't stay in the cabinet, instead we've had a long delay where one of the most important departments in government hasn't been led properly."
He said the key questions that needed answering were what Mr Hain knew and the status of the Progressive Policies Forum, through which some of the donations were channelled. Shadow home secretary David Davis said the key questions that needed answering were what Mr Hain knew and the status of the Progressive Policies Forum, through which some of the donations were channelled.
Campaign debtsCampaign debts
He added: "A whole host of questions will come out of it. But they'll be now for the police to answer, not for us."
Mr Hain joined Labour in the late 1970s after leading the campaign against the apartheid regime in South Africa, going on to be one of its longest-serving ministers.Mr Hain joined Labour in the late 1970s after leading the campaign against the apartheid regime in South Africa, going on to be one of its longest-serving ministers.
He played a key role, as Northern Ireland Secretary, in negotiations to restore the power sharing executive.He played a key role, as Northern Ireland Secretary, in negotiations to restore the power sharing executive.
The transition from Blair to Brown feels increasingly like the transition from Thatcher to Major Danny AlexanderLib Dem MP In quotes: Reaction
But his bid to replace John Prescott as his party's deputy leader ended in failure when he came fifth out of six contenders and his campaign was left with huge debts, which it tried to clear by seeking donations from wealthy individuals.But his bid to replace John Prescott as his party's deputy leader ended in failure when he came fifth out of six contenders and his campaign was left with huge debts, which it tried to clear by seeking donations from wealthy individuals.
The transition from Blair to Brown feels increasingly like the transition from Thatcher to Major Danny AlexanderLib Dem MP In quotes: ReactionTimeline: Donations row
Mr Hain declared 17 of these donations - totalling £103,000 - more than four months after the contest ended, placing him in potential breach of electoral law.Mr Hain declared 17 of these donations - totalling £103,000 - more than four months after the contest ended, placing him in potential breach of electoral law.
Mr Brown stood by Mr Hain saying he accepted the minister's explanation that the late donations were down to "an incompetence".Mr Brown stood by Mr Hain saying he accepted the minister's explanation that the late donations were down to "an incompetence".
But the Electoral Commission said it had decided to call in the police following a "thorough review" of the evidence.But the Electoral Commission said it had decided to call in the police following a "thorough review" of the evidence.
The investigation will be carried out by the Metropolitan Police Specialist and Economic Crime Directorate - the same unit that investigated cash-for-honours allegations last year which led to no charges being brought. It will be led by Acting Commander Nigel Moore.The investigation will be carried out by the Metropolitan Police Specialist and Economic Crime Directorate - the same unit that investigated cash-for-honours allegations last year which led to no charges being brought. It will be led by Acting Commander Nigel Moore.
Resignation 'inevitable'Resignation 'inevitable'
Commons leader Harriet Harman, who won last year's deputy leadership race, paid tribute to Mr Hain earlier during business questions in the Commons.Commons leader Harriet Harman, who won last year's deputy leadership race, paid tribute to Mr Hain earlier during business questions in the Commons.
She told MPs: "I regard the work my right honourable friend has been doing (as) important work for people in this country and I personally regard him as an excellent colleague and a good friend."She told MPs: "I regard the work my right honourable friend has been doing (as) important work for people in this country and I personally regard him as an excellent colleague and a good friend."
He jumped. He wasn't pushed BBC political editor Nick Robinson Read Nick's thoughts in fullYour views on resignationHe jumped. He wasn't pushed BBC political editor Nick Robinson Read Nick's thoughts in fullYour views on resignation
Health Secretary Alan Johnson, a fellow challenger for Labour's deputy leadership last year said, he was "absolutely" shocked by Mr Hain's resignation but could understand why he had done it.Health Secretary Alan Johnson, a fellow challenger for Labour's deputy leadership last year said, he was "absolutely" shocked by Mr Hain's resignation but could understand why he had done it.
"I'm really sad, because it's a big loss for us," he added."I'm really sad, because it's a big loss for us," he added.
Mr Hain's Conservative work and pensions shadow, Chris Grayling, said his resignation was "inevitable".Mr Hain's Conservative work and pensions shadow, Chris Grayling, said his resignation was "inevitable".
He said he had initially defended Mr Hain when he announced his first late declaration, of £5,000, but when the scale of the other undeclared donations became clear questions began to be asked.He said he had initially defended Mr Hain when he announced his first late declaration, of £5,000, but when the scale of the other undeclared donations became clear questions began to be asked.
"Nobody could understand how it was possible to get those donations so far wrong," Mr Grayling told BBC News 24."Nobody could understand how it was possible to get those donations so far wrong," Mr Grayling told BBC News 24.
Giving his reaction, Lib Dem work and pensions spokesman Danny Alexander said: "The transition from Blair to Brown feels increasingly like the transition from Thatcher to Major."Giving his reaction, Lib Dem work and pensions spokesman Danny Alexander said: "The transition from Blair to Brown feels increasingly like the transition from Thatcher to Major."