British Home Secretary to resign

British Home Secretary Jacqui Smith plans to resign, a source close to her said yesterday, the highest profile casualty of an expenses scandal that has swept through Parliament and could yet claim more big names.

Prime Minister Gordon Brown's Labour party faces a rout in European and local elections tomorrow and Mr Brown is expected to reshuffle his team soon afterwards in an effort to revive his government's fortunes ahead of a parliamentary election.

Britons are furious that many members of Parliament have milked the allowances system, claiming from taxpayers the cost of everything from duck houses to cleaning a moat at a time when many voters are struggling in a recession.

Ms Smith's reputation suffered in March when a leaked copy of her parliamentary expenses claims showed she had charged taxpayers for her husband's rental of two pornographic movies.

"She spoke to the Prime Minister at Easter and said she felt it was the right time to go at the next reshuffle," the source said.

With a parliamentary election due by June 2010, Mr Brown is running out of time to win back public support - opinion polls predict a big win for the centre-right opposition Conservatives.

There has been speculation that Chancellor of the Exchequer Alistair Darling, who has faced criticism for his own expenses claims, could be moved from the Treasury to replace Ms Smith.

Foreign Secretary David Miliband, who was at the forefront of speculation over a leadership challenge last year, may also be switched to another role.

"I want to continue in my job as Foreign Secretary," Mr Miliband told reporters. "I will continue to support the Prime Minister, the leadership that he is offering is important."

Mr Brown has insisted he will not step down despite dismal opinion polls ratings, saying he has a duty to clean up politics before calling the next election.

All the main parties have been hit by a series of disclosures about their expenses published in The Daily Telegraph newspaper over three-and-a-half weeks, with several MPs saying they will not stand at the next election as a result.

Labour, in power since 1997, appears likely to suffer most in the polls having presided over a now-discredited system.

An Ipsos Mori poll published in the Sun newspaper put Labour support at just 18 per cent, level with Britain's third party, the Liberal Democrats. It showed the gulf between Brown's party and the Conservatives widening to 22 points.

Smaller parties - such as the UK Independence Party, the far-right British National Party and the Green Party - are expected to benefit in this week's elections.