Interior minister to quit scandal-hit British govt

LONDON, (Reuters) – British interior minister 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 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 (MPs)  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.

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  told Reuters.
With a parliamentary election due by June 2010, 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 finance minister Alistair  Darling, who has faced criticism for his own expenses claims,  could be moved from the Treasury to replace Smith.

Foreign minister 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,”  Miliband told reporters. “I will continue to support the prime  minister, the leadership that he is offering is important.”

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.