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David Cairns this afternoon became the second member of Gordon Brown's Government to resign, saying he could no longer continue in his post while believing that the issue of the Labour leadership needed to be addressed.
Shortly after Times Online revealed Mr Cairns, Minister of State at the Scotland Office, had decided to quit, Downing Street confirmed that Mr Brown had accepted Mr Cairns's resignation.
It explained: "The exercise of Government demands collective responsibility."
The resignation came after a morning of speculation, during which his unhappiness with the Prime Minister has become known. Had he not done so he would almost certainly have been sacked, it is understood.
In an interview with Sky News, Mr Cairns said that his resignation had been prompted by the way the Government had treated rebels who had requested leadership nomination papers.
Though he had counselled against the move as not "particularly wise" and unlikely to be successful, he said he had been "depressed" by the Government's complete dismissal of their concerns.
"What really depressed me is that somebody somewhere leaked their names," Mr Cairns said.
“This debate has started. It’s going on now whether we pretend it’s not or otherwise, it’s going on now, and rather than seize this opportunity to have that debate, to engage in that debate, to talk about leadership and direction, our government, of which I was a member, chose to diminish the claims, chose to say that these people were malcontents, that they were stupid, that they didn’t speak for anyone, and instead of seizing the opportunity to have a proper debate about leadership we moved away from it.
The former minister said that over the last weeks he had come to the conclusion that "where we are at the moment – not just the opinion polls but the by-election defeats and the whole series of circumstances that surround our party at the moment – that we do need the opportunity to clear the air and have that debate and discussion.”
Mr Cairns said he considered himself loyal to the Labour Party and regretted that he had found himself in such a "wretched" position. It was "the last place I thought I would find myself", he said.
However Mr Brown had been right to speak of collective responsibility, he said, explaining: "I can’t stay in government and believe that our fundamental issue of direction and leadership needs to be addressed."
It appears unlikely that there will be further resignations today, but no one can be sure as the pressure on Gordon Brown intensifies.

Sam Coates's blog about Westminster, politics and spin
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I remember only too well last week the same man telling us there was nothing wrong in government....I wont be offering this man a job in my PR dept.
Mike, Leeds, uk
"Unelected" post-war PM's include Major, Callahan, Home, Macmillan & Eden. Please try to understand this!
David, Poole.
Sorry mate, you're wrong.
John Major won a general election in 1992. Come to think of it, Macmillan won in 1959 and Anthony Eden won in 1955.
What was your point?
Arundel, South Coast, UK
The only reason that people are backing Brown is the fact that they are trying to keep their own jobs.
So much for governing the people in the interests of the people!
Martin Briggs, Heversham, England
Dear oh dear, the NEC really are living in a bubble world..
Ok then, fine. Head into the next election with the least popular politician in a generation at the helm. See what happens.
Owen, London, UK
Standing for leadership of the Labour Party just now would be politcally equivalent to taking up banking! Are people like Cairns so battle fatigued they can't see that anyone with the smarts to be Prime Minister also has the smarts to see that leading Labour is not a good career option right now!
Alex, Inverness,
having destroyed the once all powerful Labour movement, the Blairites and Brownites of New Labour might as well chuck it now - before they destroy the country. The sad thing is that they leave the ordinary working punters without the protection that their forefathers made sacrifices to achieve.
bill robertson, eaglesham, glasgow,
Ever seen the name of a Prime Ministerial candidate on a ballot sheet, assuming any of you have ever voted? You elect an MP, and the leader of the party with the most MP's becomes PM. "Unelected" post-war PM's include Major, Callahan, Home, Macmillan & Eden. Please try to understand this!
Davie, Poole, UK
Er... never heard of him?
Jamie Soren, Dundee, UK
Gordon Brown should have the determination to replace, without flinching, all members of the cabinet, should they all wish to resign.
I am sure better replacements can be easily found.
RolfW, London, UK
I can't stand Gordon Brown. I haven't trusted him since 1p increase in NI and have found him and his party to be dishonest time and time again.
However, in this time of market upheaval we need do not need the distraction of a new Labour leader election. He'll be unemployed soon enough.
Paul, Glasgow,
Looks like people have forgotten the three home grown recessions, mass unemployment, 8% inflation and 15% interest rates under the Tories, happy days. The public finances were in melt down, despite having millions from the sale of nationalised industries, like British Gas, BP and BT, to their city friend s And now we all pay huge hikes in fuel, as the market decides what we pay and government
Is powerless to act.
Nig, Blackwood , Wales
Its hard to understand why anyone respectable would cling to office in the face of all this.
Why would you ?
M Reid, Northampton,
gosh, when a junior assistant tea boy resigns you know there is real trouble ahead
peter c, Devizes, Wessex
sorry to harp on but Idid say that the curse of Magna Carta would do for Bruin in the end
peter c, Devizes, Wessex
Wonderful, the Western banking system is crashing down around our ears, thousands of people are left unemployed overnight...and what are Labour doing, absolutely nothing! If ever we needed proof that this government is bereft of ideas and has no solutions then here it is.
Dean, Manea, Cambs, England
Should Brown stay to ensure the utter implosion of the Labour Party? Or for the sake of the nation should he gently fade into the political wilderness where he belongs?
Eric Tentpole, London,
A change of leader won't make a blind bit of notice. The same rotten policies will be pushed by his replacement just with different spin. It's a change of party not leader that we need.
Charlie, Nottingham,
Brown will do anything to still in power, Now the rebels know what we the people feel like after not being able to vote on the EU.
phillip, swansea, uk
Any body who wants to get off,then should be let go.Also Mr Darling should be introduced to a specialist councilor who deals specifically in depressive outlooks,and told to stop talking the country down,in front of a huge audience of potential investors eg the general public.
flaga, poulton le fylde, uk
Go Cairns you traitor. We don't want fair weather MPs in the party. Don't you know hat loyalty is?
Scott, London,
Gordon Brown time is up ,he must do, what is honorable to do. Enough is enough the British public wants him, to step down, without any further delay. The Prime Minister has to understand that he has overcome his welcome a long time ago. Its time that we need a PM that we have voted in POWER.
Daniel Salaman, London- Nicosia, England - Cyprus